Your credit report--a type of consumer report--contains information about
where you work and live and how you pay your bills. It also may show whether you've been sued or arrested or have filed for bankruptcy. Companies called consumer reporting agencies (CRAs) or credit bureaus, compile and sell your credit report to businesses. Because businesses use this information to evaluate your applications for credit, insurance, employment, and other purposes allowed by the Fair Credit Reporting Act (FCRA), it's important that the information in your report is complete and accurate.

Some financial advisors suggest that you periodically review your credit report for inaccuracies or omissions. This could be especially important if you're considering making a major purchase, such as buying a home. Checking in advance on the accuracy of information in your credit file could speed the credit-granting process.You can go to annualcreditreport.com to get a free copy once a year.

What should be my considerations for accepting such loan?

Auto loan companies assign greater risk factor to auto loans with bad credit. Therefore, they charge higher fees and charges. Give at least ten percent of total cost of car as down payment to reduce all such charges. Try to improve your credit some time before applying for such loan. Such credit improvement techniques include timely payment of bills, lowering debt ratio, and maintaining good credit standing with creditors. Review your credit report for any errors. Small errors can change your credit position and make it difficult to obtain such auto loans.