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Sometimes you find yourself in the position where you have both bad credit and need to buy a car, two things that do not seem to go together.  Unfortunately, the man at the dealership just turned you away due to your bad credit.  So what can you do? Are you doomed to ride the bus?  Is your bicycle the only thing you can drive?

While being in this situation is all too common, there is hope.  Those with bad credit have options.  This article will explore these options further in this four-step guide.  These tips can be helpful whether your credit score is 500 or 700.

1.  Find Out Yourself 

Now you’re probably thinking “What are you talking about, find out what myself?” but such a simple thing is often overlooked.  You should never just take the salesman’s word for it on your credit.  

Instead, you can check your credit yourself by getting your once a year free report.  Use annualcreditreport.com for your free report, as it is the only one authorized by the government for that purpose.  Now that you have your number, you have something to go by.  If your credit score is less than 580 or so, you will most likely need a cosigner. Otherwise, you will face crazy interest rates reaching 20 percent and higher.  A credit score higher than 700 guarantees the best rates on most things.

2.  Shop Around 

If you didn’t get approved for the car you wanted, the best option is to try less expensive cars. Most of the time this works. Get an older van, or pick a smaller car. Assess your needs and get the exact thing you need, not more.

 3.  Using a Co-Signer 

Using a co-signer is almost always an option when trying to finance a car.  The hard part is finding somebody with good enough credit that is willing to co-sign your loan.  Doing so makes them as responsible for the auto loan as you are, so many people are hesitant.  If, however, you are able to find a co-signer with good credit, the reward is almost guaranteed approval on an auto loan with much better terms than you would be able to get on your own.

The conclusion is that there are options when a person has bad credit.  Try different places, and take what each one has to say into consideration.  Make sure to look for the best rates!