You should view your credit report online before applying for automobile financing. Too often, people apply for financing without knowing where they stand credit-wise which can be costly over the life of the loan. Many people, who knowingly have a few blemishes on their credit, go to the dealership "hoping" they get approved. They get so excited they were approved that they don't realize the interest rate is a whopping 19.99%.

Today, almost anyone can get approved for auto financing. They only question is how much is it going to cost? The interest rate is going to be high for those with bad credit because they are deemed a high risk to the lender. The first thing you need to do is find out your credit situation. If you have good credit, you can qualify for a low rate loan at almost any financial institution. However, if you have a low score, you will not qualify for the special low interest rate offer or a prime loan from a top tier bank. So what kind of loan will you qualify for with bad credit?

If you view your credit report online and find out you have less than perfect credit, you should apply to those banks that specialize in bad credit financing. If you have the proper down payment and proof of income, you will likely get approved. You can research online to see what kinds of rates are being offered for your credit situation. You can also get quotes from a couple bad credit lenders to see who has the best rate. These rates will vary so shop around.

When you know your credit score, you can find what rates for which you qualify for. By getting a few quotes, you don't have to settle for the rate the dealership offers. You won't get a prime rate but the difference between a 15% and 22% rate will have significant impact on your payment.