Owning your own car is not only a privilege, it can also be a valuable necessity that can get you to and from work, shopping, and wherever you need to go. However, if you’re among the growing number of borrowers in the United States with less than perfect credit scores, chances are you’re under the impression that car ownership is out of your league. Fortunately, even those borrowers with bad credit can still apply and be approved for the bad credit card loans they desperately need and want.

Fortunately, there are specialty lenders who are less concerned about your FICO credit score and more about your actual and demonstrable ability to repay them when they lend you money to buy a car or other automobile. These lenders are used to working with borrowers who have, for one reason or another, less than the desired credit score for traditional loans. These lenders look at the length of your employment and the amount of money you bring home (including your spouse’s or partner’s income if they are applying along with the bad credit car loan) when making a decision as to whether you prefer or not if you are worthy under their guidelines.

Interest rates on your bad credit car loan

Before you apply for your bad credit auto loan, you should know ahead of time that due to your bad credit or delinquent credit history, you will be charged a higher interest rate than a typical borrower with better credit. To lower the interest rate assessed on your bad credit auto loan, you have two options. You can save a down payment to apply to the purchase price of the car or other vehicle. By reducing the total amount you used to purchase the car, you will often lower the interest rate the lender charges.

Another option is to apply for your bad credit auto loan with the added benefit of a good credit co-signer. By having a co-signer who has demonstrated attractive credit performance, the bad credit loan servicer considers your loan application less risky than if you had applied without the added security of a co-signer. Or you can simply view the extra interest you pay as an investment to improve your credit score.

Building your credit score with a bad credit car loan

Once you’ve received the proceeds of your poor credit auto loan, you have the perfect opportunity to start rebuilding your credit file. By making timely and regular payments and following the terms and conditions of your bad credit loan agreement, you can add valuable points to your FICO credit score that will form the basis for better loans in the future that are written on less expensive terms. In this sense, your bad credit auto loan will not only help you get the car you need, but it will also help you regain your financial freedom and put an end to your bad credit problems.