If you're shopping for a car loan with bad credit, you could benefit a lot by doing your research and shopping around when looking for an auto loan. Avoid any "buy here, pay here" financing, as these loans often come with exorbitant interest rates and high monthly payments, which could cause you to default on your payments. A local credit union might be a good place to start if you have a bad credit score — sometimes lenders like these can be more forgiving and offer lower interest rates than big banks.