I'm sure you have seen the commercials and advertisements for bad credit loans or loans for people with bad credit. Many people have very poor credit making it next to impossible to secure a loan in the traditional way such as a bank or other lending company. The problem with bad credit loans is that they usually have an extremely high interest rate that forces you to make higher monthly payments over a longer period of time then a traditional bank loan. This can mean that you can be making payments much longer and since the payments are so much higher, you can be paying back five times more then you borrowed to begin with. If you are a person with poor credit, this can add substantially to your overburdened budget and cause more problems then you had to begin with as far as your credit goes. The best thing to do is to try to get a co-signer if a loan is absolutely necessary. If not, try working with a credit counseling agency to get your credit back on track so that the next time you want that new car you can walk into a bank and get a great interest rate and you can stay away from those bad credit loans.