A car is often viewed as a necessity for most people. Reliable transportation is necessary in order to maintain a decent job. Without a job, it is nearly impossible to pay bills and establish credit. Unfortunately, for people with bad credit, it can sometimes be difficult to obtain a loan to buy a car at an affordable rate. However, there are bad credit car loans available for those who need them. Before seeking out a loan, Mark has 5 tips every consumer needs to know about these types of loans.

· Before beginning the search for a loan, it is important to know what kind of credit score a person is working with. Never assume a potential creditor is being completely honest about the status of a person’s credit score. Pulling a credit report is also an excellent opportunity to check for any discrepancies that could be unnecessarily bringing a score down by several points.

· It is important every consumer takes time to shop around for bad credit car loans. Going in with the attitude that any loan will do is detrimental and could end up costing thousands of dollars in the long run. Never take the first loan offered until after checking around and comparing rates.

· Apply for a loan through a credit union before heading to a dealership. Credit unions offer competitive interest rates to even some of the riskiest buyers. Check with local banks as well.

· Do not assume poor credit restricts a buyer to a dealership that caters to those in need of bad credit car loans. There are plenty of car dealerships willing to offer favorable deals to those with low credit scores. Car loans are much easier to obtain because of the ease in which lenders can repossess property that is in default.

· Do the math on any loan offer presented. Do not fall for low monthly payments that last six years over payments that are a little higher, but the loan is paid off in three years. Longer loans tend to translate to more interest being tacked onto the principal of the loan.

While it is a fact people with excellent credit ratings will get loans with prime interest rates, it is entirely possible to get bad credit car loans with interest rates that are fairly close to the prime rates. All it takes is diligence in finding the right loan to suit a person’s needs.