Searching for a car can be an exciting process. If you have bad credit, however, you'll need to temper your enthusiasm with caution if you plan to ask a car dealership for an auto loan.

If you have bad credit and need financing to buy a car, you're about to head down a bumpy road. Any credit problems from your past will negatively impact your credit score. It's this low credit score that will make finding the best financing a difficult proposition.

Unless you're buying a car from a private seller, you'll most likely visit a car dealership. Most of them provide some form of financing, but if you have bad credit, you need to be careful when choosing an offer.

Realistic expectations

You'll definitely be facing an uphill battle. To compensate for the high risk you pose as a borrower, a dealer will charge you more for a loan-provided that you qualify in the first place. Expect to pay higher fees and interest rates. This isn't some sort of discrimination by lenders-they simply need to cover their costs in the event that you default on a loan. Considering the recent subprime mortgage debacle, their trepidation is understandable.

Interest rates will probably be in the double-digit range, and you can expect to be asked for a higher down payment. You may find that these conditions are simply too much to pay. If that's the case, don't overextend yourself. If you do, you could cause even more long-term damage to your credit score.

Borrower beware

Although you'll be paying more for a car loan than people will with good credit, you still need to be on your guard to make sure that you don't pay too much. You're bound to run into unscrupulous dealers who'll be happy to charge you an astronomical interest rate. Some finance departments will even increase the price tag on the car, and then facilitate the financing of the overvalued car at an inflated price.

At car dealerships, don't be surprised if the finance department refers you to a different lender. There are specific ones that cover bad credit auto loans, and many dealerships simply don't have the time to deal with bad credit borrowers. You may be better off finding these lenders on your own. Bypassing the car dealer could save you the cost of a middle-man.

With your poor credit history, now's the time to be a smart shopper as you look for a car loan. Visit a variety of different dealerships, and look at their proposals. Expect to pay more for your past mistakes, but don't settle for the first deal that's thrown at you. Search well, search smart, and you should be able to find a bad credit car loan that will get you behind the wheel and on the road.