An auto credit score is the same as your regular credit score. Car financers pull your credit report and look at your FICO score to measure your credit worthiness based on credit history length, payment history, and outstanding balances. Normally, your FICO score should be at least 720 to get a “good” auto credit rating and a decent interest rate on a car loan. If your score falls below this number, however, you have the option of securing an auto loan for bad credit.

Many lenders offer car loans to buyers with poor credit. What usually determines your poor credit is a FICO score created by a history of late payments on your outstanding credit accounts. Bad credit auto financing is firmly based on offering buyers who do not have many other options the choice of a higher interest loan. Other factors that can affect your interest rate include your income, job status, and the trade-in value of any other cars that you own.

Many lending institutions specialize in auto loans for bad credit. These companies are sometimes called subprime lenders. Although they know already that you are a credit risk, they have established a way for you to secure a car loan. Here are some tips for making sure your application process for auto loan credit goes as smoothly as possible:

1. Get a credit report from all three credit reporting bureaus. You should always know what kind of credit state you are in before you pursue a car loan. It is important to get a report from all three agencies because some credit entries do not show up on just one report.

2. If you are on a tight time schedule to be approved for a car loan, then this next tip does not apply to you. Try to improve your credit score as much as possible before applying for your loan. It might take a little bit a time to pull this off. Try calling creditors and negotiating payments, then make the agreed on payment on time for a few months. Your FICO score will improve. If the outstanding credit amounts are small amounts, pay them off as soon as you can.

3. Work on saving for a sizable down payment. The more upfront cash you have when getting a car, the better position you are in to negotiate the terms of the purchase. Lenders can respect cash.

4. Find someone who has good credit and is in a position to co-sign for the car loan for you. It is a lot to ask of most people you know, but someone close, like a parent or a sibling, may be willing to do it for you. Just ask.

5. Do not try to buy a brand new car. Look for a good quality used car instead. Newer cars have higher payments and are more difficult to get financed.

6. Do not settle for the first loan that you are offered. Comparison shop for the one that works best for you. Having a poor credit rating does not mean that you have the take the first offer that comes along. An entire industry of lenders is competing for your signature on a promissory note. Just make sure you have a reputable lender.

Having poor auto credit, does not have to stop you from getting the new car that you want. You will have to make more compromises that someone with excellent credit and you will have to be patient enough to find the right deal, but with great timing and good research, you could be driving off the lot with your new car sooner than you think.