Advice On Auto Dealers & Terrible Credit

Don't even think about shopping for a car
until you know your credit score.

Seriously, you can get a free annual credit report right here. All the experts say to figure out your financing before looking at cars, and that includes knowing how your credit score will impact your interest rate. You can find interest rates by credit score at www.myfico.com.

When you get to the dealership, focus on the total cost of the car, not the monthly payment

Any loan can be made to match your monthly payment if the terms are stretched out long enough. This can cost you money over the long term. The average new car loan is now approaching six years in length -- an unheard of idea just a few years ago.

Appreciate what that bad-credit, higher-interest loan is doing for you and keep it in perspective

If you're paying 18 percent instead of 9 percent over a four-year loan, you're only paying $1.49 a day more for that loan. That money -- a cup of coffee at Starbucks, a can of Red Bull -- is giving you a chance to rebuild your credit and get your financial house on a solid foundation. Lenders charge more because they have to cover risk; once you show you're not a risk, your credit standing goes up and your potential interest rates go down. So go ahead and apply!

Here's a tip:
Let the experts do the work for you!

Every year the editors at Edmunds.com, arguably the best automotive site out there, come up with a list of their most wanted vehicles.

This list covers everything -- from sedans to trucks -- and the theory here is to go back a few years and find the more affordable winners. You'll be amazed at how many great cars are in your price range:
• 2007
• 2006
• 2005
• 2004
• 2003
• 2002
• 2001
• 2000