You're finally ready. You need a new car and are going to go for that sports car you've always wanted. You need a loan but have a high paying job and should be able to afford the payments, you think. You get a copy of your credit report and then it hits - your credit score is pretty low.

The only loans you can get approved for, to get your hands on your $30,000 prize, have interest rates so high your monthly payments would be astronomical. You can't even get a new economy car at the rates lenders will approve you for. A used car is looking like your only alternative.

It happens all the time. Consumers can often forget just how important good credit is to obtaining an auto loan with affordable rates.

Unless they have cash-on-hand to make a purchase, many consumers set their sights too high when they plan to finance a new vehicle. Once a potential lender checks their credit, reality sets in.

If your credit is bad, a new vehicle may not be in your immediate future. With new vehicles typically ranging from $13,000 and up, the monthly payments on a 5 or 6 year loan may be significantly more expensive if you have a low credit score. A moderately priced used vehicle may be your only alternative for the time being.

Your interest rate will still be high, but your payments shouldn't be quite as bad since you aren't financing as much money. The more payments you make on your high interest loan on time, the better your credit score may be. After a year you may even qualify for refinancing at cheaper rates.

If you want to finance a new vehicle and have bad credit, you're going to have to spend months or even years rebuilding your credit before you'll be able to afford new. In the meantime, there's plenty of quality used vehicles available that may fit within your budget.