Don't waste time or points on your credit report by applying to every automobile lender on the net if you know you have bad credit. You can do more damage to your credit score.

First go to the link for Credit Reports and obtain your credit report. If your credit score is above 680, you are considered a prime borrower and will be able to obtain a good APR on a credit card, car loan or home loan. If your credit score is below 680, you are sub prime, and will pay much higher APR on your loan. Below 550, you will find it very difficult to find a credit lender.

Trying to reestablish your credit after going through some difficult financial times is often a catch-22. You can not get approval for a loan because you have bad credit, and you can not improve your credit because you you are not able to get approved for a loan.

A great way to start rebuilding your credit is through an auto loan. A bad credit auto loan might charge higher interest than if you had a perfect credit rating, but if you are diligent in paying your payments on time, your credit rating will improve. Over time you will qualify for lower interest loans as your credit rating improves.

Lenders and dealers who are willing to extend credit to those with "less than perfect" credit offer you the opportunity to take the first step.