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Bad credit should never prevent a person or a family from getting the car of their dreams; or perhaps a car that is needed for family transportation. In most cases people with bad credit will seek a car loan without doing their research, or even worse, never attempting to repair their bad credit. To keep from getting a bad credit car loan, there are a couple of pointers that individuals can use.

To stay away from bad credit car loans, creating a good credit history is key. A good credit will not only get you better terms in your bad credit car loan, but it will also help you get a better car and lower payments. Some steps you can use are:

1.    Getting a secured credit card. If you cannot rebuild credit history with traditional credit cards, these will help you get back on track. Although you have to make a security deposit, this card will help you restore credit that can be used towards getting away from a bad credit car loan.
2.    By paying off your biggest balances on your credit cards. If you are unable to do this, pay off the card until there is a vast gap between the credit limit and your available credit. This will help lower your monthly payments and increase your credit in the process. The result will help you stay clear of those bad credit car loans.
3.    Use a co-signer on the car loan. A co-signer on bad credit car loans will help reduce the rates while at the same time help you build positive credit.
4.    Get a gas card. A gas card that is used simply for gas and nothing else and always paid off at the end of the month will improve any credit situation.

With these four pointers, you will be able to increase you credit history, and reduce the chances of getting that bad credit car loan. Purchasing a car with bad credit is never an easy ordeal. There are tricky situations and always dealers out there to take advantage of your financial mishaps. However, with self determination and smart financials, anyone can improve a bad credit situation.

This Financial Services article was written by Jerry Travers on 8/28/2008