Bad credit car loans are designed for individuals with low credit scores, offering a chance to finance a vehicle despite past financial struggles. Lenders assess risk and often charge higher interest rates to compensate for potential defaults. While these loans provide an opportunity to rebuild credit through timely payments, they can also be costly due to added fees and strict terms. Borrowers should compare lenders, check for hidden charges, and consider improving their credit before applying. A larger down payment or a co-signer can improve approval chances and lower interest rates, making repayment more manageable.