However the situation arises, bad credit* does not necessarily signal the end of the road for car shoppers. In fact, the good news is that there are many qualified buyers with poor credit who are taking the wheel with the help of financing. And they can enjoy a lot of the same conveniences as buyers with better credit, such as preapproval.

Every car shopper’s position is different, and planning your car-buying process may help you understand what’s right for your situation, and how best to achieve it. Here’s how to approach car loans when you have bad credit.

  You might already have an idea of the car you want to buy, but the Consumer Financial Protection Bureau (CFPB) recommends taking a look at your financial circumstances, including credit history, budget and what you can afford, before shopping for a vehicle. 

Looking at the big picture, a budget calculator helps gauge where a car loan payment may fit into your finances. It enables you to enter your monthly expenses to get an idea of what’s left for an auto loan payment.

That figure, along with loan term, annual percentage rate (APR) and down payment, can be plugged into an affordability calculator to suggest what you can spend on a car in total. And because it’s an online calculator, you can adjust the values of each variable to instantly see how the situation changes. In a similar way, use the monthly payment calculator to see how loan amount, APR and down payment affect your potential monthly payments.

Lenders take a range of factors into account when considering an auto loan application from a consumer with bad credit, and most will make a decision based in part on credit score. Although it is not the sole factor, your score plays a key role in determining whether your application will be approved, and, if so, what interest rate you will get, says the bureau. Credit score is an indicator of someone’s creditworthiness, partly influenced by their credit experiences, which are compiled in credit reports.

The CFPB advocates getting hold of a copy of your credit report from the national reporting agencies to check for inaccuracies. Details of how to request reports are available at its website.