It used to be that poor or bad credit scores meant there was absolutely no chance of obtaining financing for a car. In today's economy, it's not difficult to get into debt and then find you have difficulty paying those debts back. Creditors are recognizing that bad payment habits in the past are not necessarily indicative of how an individual will make payments on a new loan, and have started programs that allow individuals with less than perfect credit to obtain a bad credit auto loan.

If you are employed and have had the same job with steady income for at least a year, your chances are pretty good that you will be able to obtain a bad credit auto loan of some kind. You should bring your most recent W-2 with you when car shopping, or at least a few pay stubs as proof of your income. You may require a co-signer or collateral, or a down payment, but it is unlikely that you will be denied for bad credit car loan programs.

If you are ready to get a new or used car with financing, but have a less than perfect credit history, you may still be eligible for a bad credit auto loan. Before you start car shopping, however, there are a few steps you should take to improve your chances of being approved for a bad credit loan.