The process of applying for a bad credit auto loan is slightly different than with a traditional car loan, and this starts with the lenders that are willing to finance you. Most banks, credit unions, and other lenders aren't willing to work with car buyers with poor credit because they have strict credit score requirements. To cover this gap in lending, some lenders offer bad credit auto loans. While these come with higher than average interest rates, they give car buyers a chance to get the vehicle they need and to improve their credit with timely payments. Almost all subprime lenders are indirect lenders that work through car dealerships, meaning you can't approach one on your own. Instead, you need to find and apply with a special finance dealership that's signed up with these lenders. Typically, the process of applying for a bad credit auto loan works this way: you sit down and speak to somebody in the finance department at one of these dealerships to discuss your situation and fill out an application. The dealer will send it along to a lender (sometimes more than one) that fits your profile for a decision. If a lender approves you, they'll send back what's known as a payment call that sets the terms of the loan, including the interest rate and maximum monthly payment. Based on these terms, you can choose from the vehicles in the dealership's inventory that you qualify for. Once you've checked them out, taken them for a test drive, and picked the one you want, you can move forward with the car buying process.