A car is a requirement for each and every individual. It is a necessity for a borrower with good credit score. You need a car even when you have a subprime credit history. Yet, most bad credit borrowers complain of constant car loan rejection. But, things are changing with subprime auto financing.Subprime Auto Financing – A Common PhenomenonPeople with good credit scores are called prime borrowers. And, people with bad credit scores are known as subprime borrowers. Lenders that offer auto loans to subprime borrowers are called subprime lenders.Subprime car financing is common these days as many Americans are having a bad credit history. Lenders know that they cannot shy away from offering auto loans to bad credit borrowers because there are so many of them. They would lose a considerable amount of business if they didn’t offer subprime auto financing options.Important Tips to Get Guaranteed Approval on Sub-Prime Credit Auto LoansYes! It is possible to get guaranteed approval on subprime car loans if you understand these important tips and follow them.Credit HistoryYour credit scores play an important role in getting any type of loan. Even if you have subprime credit, it is necessary that you check it. An accurate credit score can help you avoid scams. There is a possibility that lenders may con you by not offering lower rates under the pretext of a bad credit score. So, always check your credit score.When you check your credit ratings, you must go through your credit report as well. Look for discrepancies. If you find any error, report it to the concerned credit bureau. It is better to remove all errors from your credit report because it will improve your credit score. You can also increase your credit score by making regular monthly payments.Down Payment and Co-SignerA large down payment increases your chances of getting a subprime auto loan. When you put money down, the car loan amount reduces. There is also a decrease in the lender’s risk. As a result, getting lower interest rates becomes easy for you.When you have a co-signer, the lender is sure that his investment is safe. This will increase his trust in you and your car loan approval chances will increase.Search for Lenders after Making a BudgetWhen you make a subprime car loan budget, you get an idea of your affordability. A budget is a necessity because a planned credit purchase is easy to manage.Once you know how much you can actually afford as monthly payments, start your search of finding a subprime lender. It is always better to search for car loans first and then choose the vehicle. When you have a pre approved auto loan, it takes pressure off your mind and you are able to make a better car choice. Also, you avoid unpleasant car financing surprises at the dealer’s lot.Submit your car loan application at many places because lenders don’t have common criteria for subprime auto loans. It is possible that few lenders may consider your score very bad while others may think of it as average. So, it is always better to apply with several car lenders.Traditional financial institutions and banks are reluctant in offering auto loans to subprime credit borrowers. So, it’s better to avoid them. You can apply with a credit union if you are its member. You can even opt for online subprime auto loans by applying with online auto financing companies. These companies offer instant approval because they work round the clock with a large network of lenders and dealers. Remember to check the authenticity of the website. Apply with only reliable car financing companies.Comparison and NegotiationAfter receiving several car loan quotes, compare them on factors like interest rate, monthly payment, APR, car loan terms and conditions, pre-payment penalty, etc. When you compare on all these aspects, you get a clear picture.Once you have chosen the best subprime auto financing program, negotiate with the lender. If he is convinced that you will make regular payments, he will definitely lower your monthly payments.Subprime auto loans not only allow you to buy a car but also help in improving your credit score. With simple yet extremely effective tips, getting subprime car financing will become very easy. Don’t forget to use them while applying for your next car loan.