In today's tough economy, everyone is feeling the strain of the tightening financial purse strings when it comes to obtaining used car loan rates for people with bad credit. No one feels this more strongly than a person who has made some poor financial decisions and now has bad credit. There are many reasons why a person may fall into the category of used car loan rates for bad credit. It could be unpaid debt, over-used credit cards, or bankruptcy. Whatever the reason, bad credit is something that haunts people for many years after the fact.

If a person with bad credit wishes to buy an automobile, there are few options out there. However, these loans come with a hefty price tag, with extremely high interest rates and less-than-perfect terms. A person just getting back on his feet financially may find it hard to find an auto loan for bad credit because the mere choice of this loan may place him back into financial jeopardy. Bad credit auto loans can sometimes carry up to a 29 percent interest rate, which most people would think ridiculous but may be the only choice for some people. The interest rate alone on bad credit auto loans precludes many people from buying a car.

In most cases, buying a car is a wonderful experience. With options like zero percent interest, short-term pay-offs, and incentives, a new car buyer has many options. Not so with people who have bad credit. They are usually shown one or two vehicles that match their financial needs and are given an auto loan with terrible terms, such as an extended pay-off that makes the car worth much less than a person would like before it is even paid off.

Regardless of the reason why a person has bad credit, the consequences are almost always universal when buying a car. As people try to dig themselves out of the financial hole that they are in, finding a car loan that won't dig them deeper can be a challenge.