If you’re thinking about taking out a bad-credit car loan, there are some things to try to get together beforehand to ensure you’re making the best financial decision for you right now.

• Determine how much you can afford to pay. This amount should encompass more than just how much you can afford to borrow. Think about other expenses like annual registration fees, car insurance, maintenance costs, and gas costs.
• Make a bigger down payment if possible. If your credit isn’t great, a larger down payment will help lenders see you more favorably as a borrower. Additionally, a larger down payment means you’ll have a smaller loan balance to pay off, leading to less interest paid overall.
• Try to clean up your credit report before applying for a loan. If you catch any errors, you should dispute them because they could be dragging your credit score down. If you have any outstanding debts, start paying them down where possible—even making a small dent can help your credit score.
• Be honest about what kind of car you should buy. Your focus should be financing a car with an affordable payment (even if it’s not your dream car) and one that you can afford to take care of in the coming years.
• Shop around with lenders. Don’t assume that the first lender to approve you will be the only one. Apply with a handful of lenders so you can compare the rates of those who approve you.