If you want to get a bad credit used car loan you might be surprised to learn that getting one is just as easy as getting a used car loan with good credit. The reason that it is still easy to get used car loans with bad credit is that the loans are secured by collateral (the car) and so auto loan lenders have some protection. Of course there are cons to getting a bad credit used car loan and the primary one is the higher interest rates you’ll need to pay. If you’re looking for a way to get that loan without paying more, then read the following 3 tips to help you get a lower interest rate on your bad credit used car loan.

Find a Co-signer – While getting approved for a used car loan with bad credit isn’t difficult, it can be expensive. Auto lenders regularly offer loans to those with bad credit, however they also require higher interest rates than for loans to those with good credit. If you’ve had a recent bankruptcy or missed and late payments then chances are your credit score is quite low and there is small chance that you can get a low interest rate on a used car loan on your own.

Of course there’s a way around this and you can get low interest rates on a bad credit used car loan. The way you do this is by applying for the car loan with a co-signer who has good credit. This helps because co-signers are also considered responsible for paying the loan if the primary borrower is unable to make payments. This means the lenders will take the co-signers credit score into account when offering the loan and the rates will be much lower than you could get on your own.

Use a Down Payment – A second way to lower your interest rate when applying for a bad credit used car loan is to put some money down on the purchase. The amount is up to you, but to lower your rate you’ll need to put at least 10% down on the car. Depending on how poor your credit score is even this might not help, but it is worth a try. Plus you get the added bonus of lower monthly payments since you’ll be financing less.

Improve You Credit Score – I know it’s impossible to improve your credit score in a quick period of time, but you can make small gradual improvements each month. By paying your bills on time, paying more than the minimum on credit cards and cleaning up your credit report you can easily add 10-20 points or more to your credit score each month. If your credit score isn’t that bad to begin with you could actually be a good credit person in just a few months and qualify for the lower interest rates on your used car purchase.

If you’re looking to get a bad credit used car loan these three tips can help you lower your interest rates, lower your monthly payments and get your credit score moving higher as well. Don’t give up on your used car purchase, instead fight back and get your credit score back on track.