Many people need to go car shopping at some point to get a vehicle to go to work and carry out various other activities. Buying a car often requires a loan, and the lender will more than likely review your credit score to see what kind of interest rate you should have. Bad credit means you are a higher risk, which corresponds to higher interest rates. Approximately 33 percent of Americans have bad credit, and many have no credit at all. Many responsible people have bad credit. Here are ways you can still get a solid loan.

1. Improve Your Credit in the Months Leading Up To Buying a Car

There is only so much you can do to improve a credit score, and it is not going to become significantly better in a couple months. However, you should still practice good shopping habits to get your score as high as it can be. Look up what your credit rating is to see if there are any errors. Mistakes are made all the time, and you should be aware of them.

You also do not want to take out a new credit card within a few months of taking out a loan. You do not want any new major credit obligations on your plate. Make sure you make any payments on time and pay off any outstanding debts you have to the best of your ability.

2. Make a Larger Down Payment

You may have to go to the dealership with bad credit. There are numerous tactics to implement to get better rates. For example, you can put down a bigger down payment. With bad credit, you may not get as big of an auto loan as you would like. With a larger down payment, you can help offset some of the interest and increase the selection of vehicles available to you.

3. Lower Your Expectations

This may sound harsh, but it is important to remain realistic when you go car shopping with poor credit. Some vehicles may not be available to you, and it is important to look at what cars are good for you before making a trip to the dealership. Perhaps you can do without the premium speaker system and sunroof. Determine what you truly need out of a car as opposed to what you simply want.

4. Get a Car You Will Be Fine With for Years

There are plenty of people out there who trade in vehicles once every couple of years. If you have bad credit, then you should buy a car with the expectation you will have it for a while. If you really want a new vehicle within a few years, then you should actively try to build up your credit, so you can have a larger selection of cars available to you. Make all your auto loan payments on time and use your credit card wisely. For the time being, look into reliable cars that should not have any major problems soon.

5. Look Out for Scams

Individuals with bad credit are often the biggest targets of scammers. Watch out for predatory loans. The easier way to circumvent these scams is to get loans from reputable lenders. Some loan scams offer insanely low interest rates, but there may be other details in the fine print that will inconvenient you in the long run. Get all the facts and read all the paperwork before agreeing to loan conditions.

6. Check in With Non-Profit Agencies

If you have low income, then you may qualify for a solid auto loan with a non-profit agency. Only certain states have these programs in place, but you should still do research online to see if there are any available to you. These organizations are here to help you buy a car with a bad credit score.

A poor credit score is one between 500 and 600. Stay up-to-date with your rating often, so you know where on the scale you fall. Fair credit is between 601 and 660 while good credit falls between 661 and 780. Even getting your credit into the fair range will help dramatically with the kinds of loans you qualify for. Start taking steps now to improve your rating. It will not only help with buying a car. It will help with buying a house one day.