Many people with bad credit live with the fear that they will never again qualify for a car loan. This is an unrealistic fear that rises from old connotations of bad credit consequences and empty threats made by collection agencies and bill collectors. The actual facts of the matter simply prove that people with bankruptcy and other blemishes on their credit score can still qualify for a car loan, as well as credit cards and home mortgages. There is hope and there are second chances for those who have bad marks against them on their credit reports.

The first thing to realize is that just because bad credit holders can get approved does not mean they have the same conditions that other buyers with good credit possess. The conditions of a loan to someone with a low credit score can vary widely depending on the severity of the individual's credit issues. Some problems affect all bad credit borrowers but may depend on the intensity of the debt. Also, interest rates are going to be higher for those with bad credit. This is simply a fact. Though it may seem discriminatory, it is a common practice amongst financial institutions due to the nature of risk these lenders are taking by offering loans to those with no credit. Interest rates are calculated by the national average at the time of the loan and the amount of risk associated with the particular loan. As a result, those with bad credit have a higher interest rate due to the associated risk. The established rate of interested for the United States is often represented as a prime rate. This is the rate that a bank may charge their best customers (those with high credit and money in the bank). The Wall Street journal keeps an active publication of the current prime interest rate, but this rate can also be found on many different websites on the world wide web. The great thing about the competition of capitalism in the United States is that most banks are within a half a point of the current prime interest rate due to lending competition. This competition also helps those with bad credit get loans because lenders need business and so they will try to work out a loan proposition for most anyone. Some of the best lenders are car loan financers.

When searching for a used car dealer Austin has some dealers that will offer "last chance" financing. They want you to be able to buy a car even more than you do, so do not be afraid to buy just because you have bad credit. Consider the payments and the interest rate, and know that you can make the payments every month. That is the most important part of getting a car loan with bad credit. Remember, getting a loan with bad credit and making the payments religiously will cause that bad credit score to slowly change. That is why it is very important to look for a dealer that will report your car payments to the credit bureau on a monthly basis. Many dealers do not spend the time doing this, but finding ones that do is extremely worthwhile. This way, your score will be affected positively every time you make a car payment, when otherwise your credit score would not change at all.

This article is simply designed to be an encouragement to people everywhere that there is still hope after bankruptcy and bad credit. Go to a lender to see for yourself how much more you will pay in interest according to the type and severity of your debt. Remember, the type of loan and the severity of your credit issues are what determine what kind of loan you can secure, not if you can secure one. If you are ready to make the payments on a new car, or even a new house, know that you have options.