So you have had some problems with your credit in the past, maybe even with a car loan, and maybe the circumstances were not your fault. Even if they were, learning to manage your credit and make timely payments to your creditors is something that you learn along the way. But in the meantime, you have gotten your act together and now you are looking at a way to finance a new car and your current credit problems are behind you.

The problem is that the credit bureaus have a memory like an elephant, or at least that is the way it seems when you go to apply for an auto loan. It seems like they remember every little thing, even though you are in a much better financial position today and have learned your lessons.

The truth is that it is not at all impossible to get a great deal on a car loan even if you have bad credit. Of course it is easier if your credit is good, but if that were the case, you would not be reading this. In fact, an auto loan when you have bad credit is an excellent way to firm up your credit score and affirm the fact that you have gotten your financial act together.

There are many sources that will give you credit for an auto loan even if you have bad credit. If the dealership that you want to purchase the car from is not real innovative, you may want to bypass your neighborhood banks and look elsewhere. If you live in New York and the company offering you the loan is in California, does it really matter, since even if they are in your same city, you will more than likely be mailing your monthly payments anyway. In other words, do not limit your searching to your local city, but take the time to search for who is willing to offer the best deal for your needs.

You may also want to consider car leasing options, but be careful here. Usually the credit requirements are a bit higher, and you need to be aware of how many miles per year you anticipate putting on the car. If you exceed that number of miles, say 12000 per year at the end of the lease, you may end up paying a whopping 30 cents per mile over what it should be. Also be aware that with a car lease, you are not building any equity in the car, even though you still have all the responsibilities for gas, oil, maintenance, tires, tune-ups, insurance, etc. On the bright side, your payments will probably be lower, depending on the estimated resale value of the particular make and model you are looking at.

Yes, you can get a great car loan even with bad credit. Be aware that you will likely pay a bit higher of an interest rate on the loan, but this makes sense in the eyes of the lender since he feels like he is taking a chance on you. Your goal is to prove him wrong after you get your loan and your car, by making each and every payment on time, which will go a long ways towards reversing the negative items in your credit report.