Once a consumer declares bankruptcy, goes through home foreclosure, defaults on a loan, or otherwise experiences a "terrible credit" event, scam artists go on the prowl. People looking for auto loans to finance a vehicle purchase can find themselves the recipients of tempting offers that may not be all they seem. Learn how to avoid "horrible credit" scams that target vulnerable individuals desperate to get car loans at any price.

People With Terrible Credit - Get In a Strong Credit Position

The best defense against a credit loan scam or fraud, though not a fast one, is to re-establish good credit to increase the likelihood of being offered low-interest car loans. People with horrible credit may want to get a copy of the credit report from each of the credit reporting agencies, Experian, TransUnion and Equifax, correct any errors, and increase their credit score by paying bills on time, calling creditors in the event of payment difficulties, and not closing credit card accounts with balances.

Recognize the Horrible Credit Scams for What They Are

Watch out for advance fee car loan scams that demand payment up front, then don't deliver the credit or cash as promised. Be wary of look-alike business names, lenders who offer auto loans over the telephone, lenders that don't ask for a credit report but do ask for a bank account number, and lenders who disguise fees as "insurance" or "processing fees."