Car dealers love to take advantage of those with bad credit.  Heck, everyone tries to take advantage since they know that you’re going to be desperate for cash.  If you’re looking to spot a car loan for bad credit, I wanted to give you some scams that you should look for.

#1 Always read the contract - If you have to, get someone to read the contract over for you.  Have them spell out everything that you’re going to get.  Know your rate and how much you’re going to have to owe over the next few years.

#2 Watch out for the trade ins - If you find yourself at a no name car dealer, they are going to rip you sideways for a trade in.  Always get a KBB value before you set out to know what you should be getting.

#3 Ignore the warranty - The salesperson is more than likely going to offer you a warranty.  I would make sure that you avoid something like this and look for one yourself.

#4 Check your credit report – You may find that you’re not even in the bad credit category.  Get a copy of your credit report and see what your credit score is.  If your score is above 680, you may want to try your luck with a regular loan.

#5 Always compare - Compare your prices and rates online.  You’re going to find that you won’t get a high pressured sales pitch and you will also find that it’s going to be easier to research.  The last thing that you want to do is sit there and have someone try to get you to sign up.    Try comparison sites such as MyAutoLoan.

#6 Just use cash - If you’re finding that you’re having a hard time getting a loan, you may just want to go the cash route.  You can find that there are many cars under $3-5,000.  You don’t need to get a BMW if you can’t afford one.

Try your local banks, credit unions, or again, use cash.  You’re going to want to avoid those private car loan companies because you’re soon going to find out that they are going to charge a high interest rate and you will just get ripped in the long run.