[Spaceywilly]

Originally Posted by Draco-REX

Check your score. But likely, if you think you're going to get a bad rate, you will.

Assuming you have little to no credit history, here's my advice:
DO it if you are sure you can keep up with the payments. Do NOT do it if you aren't sure. The good reason to do it is BECAUSE of your bad credit. Loans do a real good job at improving your credit if you keep up with them. Even if your credit sucks, when you get your car loan, you'll get offers for credit cards in the mail.

Do NOT take any of those offers just yet. They'll have limits that are too low.

Get into some small, limited use cards like gas cards. Use them and pay them off every month. If you have to, set aside the money when you fill up and then use it to pay the cards off. Once you have established you're good at paying your loan and your small cards, look to see if you can get a big general-use card.

If you can get one, put one purchase on it at no more than 20% of the limit, and make slightly above minimum payments. When you pay it off, do it again. Having a card with a high limit ($7000+) gives creditors some reassurance that if you have a rough spot, you can still pay your loans.

To really get this to work for you, you'll have to have the big card for over 3 years, but it'll still help in a few months. Monitor your credit rating. Good credit rating sites will give your recommendations on how to improve your score.

Once you get your rating up to a good or better level, you can go to a bank (credit unions usually have great rates) and refinance your car loan at a lower rate.

Now, this will probably take 2-3 years of good behavior to work. But since you'll likely be on a 6 year loan, it will still save you a lot of money in the long run, and a ton more in the future.

Good luck. Just remember that, like exercise, some pain now will pay off in the future.

this is all very good advice.

One more thing I would add is the site creditkarma.com is a great resource for knowing your credit score. They will break down exactly where your score comes from and how you can improve it, and you can even simulate what will happen to your score if you take certain actions, and it's all free. As far affording the car, it's up to you to determine what you can afford for a payment each month. If you can afford it and know that you will be able to afford it for the entire term of the loan, then go for it.