Even though the internet has opened up all sorts of possibilities for car loans, in many cases the smartest thing to do, especially if you have bad credit, is to finance from a dealer that specializes in bad credit car loans.

All car loans are not the same

Here at Auto Credit Express, we get calls every day from customers that have gotten themselves into trouble by entering into a sales contract that they can't repay. In many cases, this situation could have been avoided if they'd done their homework and come to the conclusion that they should finance from a dealer.

What's the big deal with credit scores?

When buying a car, your credit report and credit score are everything. You need to know, ahead of time, what is on your credit report and what your FICO score is. If your credit score is above 640, chances are you can get a car loan with a conventional lender. If it is below 640, you will probably have to deal with a subprime lender. Most of these lenders do indirect lending, which means you have to finance from a dealer.

Work within your budget

Set aside a budget for your car. This is especially important if you have bad credit, since these lenders will look very closely at your ability to pay back a loan based on your income and expenses. Be sure to include gas as well as insurance costs (full coverage). At autocreditexpress.com, you will find a number of loan calculators that will help you estimate your car payment as well as give you an idea of your car budget.

Pick a dealer that will help you improve your credit score

If you have bad credit, you'll want to make sure that your car loan is helping your credit score. Before going to a buy here pay here lot, remember that they don't report to the credit bureaus and getting a car there won't help rebuild your credit. At Auto Credit Express, we have helped thousands of customers, with good credit and bad credit, buy a new or low mileage used vehicle that is not only reliable, but will help them raise their FICO score.

The Bottom Line

In order to avoid a bad car loan, you need to know your credit score and your budget. Visit us at www.autocreditexpress.com for payment and loan information. While you're there, fill out the bad credit car loan application so you can finance from a dealer – one of 500 in our nationwide network that specializes in a full range of automotive finance choices. Remember, here at Auto Credit Express, we want you “on the road” to better credit!