Bad Credit Car Loan Tips

If you got turned down for a bad credit auto loan, think about a secured credit card instead.

On one hand, we're in the bad credit auto loan business, but truth be told we are first and foremost in the people business.

We want you to be a good, solid -- and well-informed -- customer when you're talking to dealers and finance officers. We want everybody happy, and you won't be happy if you feel like you're getting ripped off.

So let's keep that from happening. Consider the following before clicking the Apply Now button, especially if you're coming off a bankruptcy discharge.

• You need to show positive momentum on your credit. That's where timely payments on a secured credit card can come in handy. If you've paid steady payments for six months or so, go ahead and click Apply Now.

• You need to show stability. Lenders like to see two years at the same residence and the same job.

• You need to know the comfort range of lenders. A $10,000, four year loan at an interest rate of 10 to 15 percent works out to a monthly payment of $250 to $280. That's a monthly payment most people can live with, and it's enough money to snag a pretty good used car. You can find some research on best used cars for bad credit car loan customers at one of our sister Web sites.