There are many places in the country that do not have a good public transportation system, so owning an automobile is essential for commuting. However, a quality vehicle costs thousands of dollars, and few people have enough money to pay for a car in cash. Most people simply opt to finance an automobile purchase, but doing so can be more challenging for those who don't have good credit. However, while it can be a little more difficult, it is still possible to finance your auto purchase when you need a car but have bad credit. Use the following tips to help you finance a car purchase.

Fix Your Credit As Much as Possible

If you need a car in the near future, you won't have time to completely repair your credit before requesting financing. But, there are small things that you can do that can make a difference. In the month or two before you plan to buy a car, make sure that you pay all of your bills on time. Also, avoid using any credit cards and increasing your debt balance. Even if you still don't have good credit, a couple of months of positive behavior can boost your credit score.

Be Prepared to Provide a Bigger Down Payment

When your credit is less than stellar, you need to be prepared to provide a bigger down payment when financing the purchase of an automobile. The larger the down payment, the lower the loan, so you are considered a lower risk. Likewise, when you can show a lender that you have been able to accumulate a good-sized down payment, it shows financial responsibility, which can help offset a sub-par credit score and blemishes on your credit report. It can be very hard to get approved for financing a car without a down payment when your credit is bad, so it is worth it to save up a few thousand dollars before you begin applying for auto loans.

Understand Current Interest Rates for Auto Financing

Prior to applying for auto financing, it is important to do your research and understand what the current interest rates are for auto loans. When you have bad credit, you will not qualify for the lowest interest rates available—those are typically reserved for buyers with excellent credit. However, knowing the current interest rates can help ensure that you get fair financing. Avoid auto loans that have an interest rate that is substantially higher than the current average—even with bad credit, you can most likely find financing that has interest rates that make the loan affordable.