If you have below-average credit or even no credit at all and are looking to get a loan for a used car in New Jersey, the news may be better than you think.

When you apply for a loan, the first thing a lender will look at is your credit score. Although each bank has a different categorization system, if your score is below 620 you may be classified as a subprime borrower.

With new options known as “bad credit car loans,” purchasing a used car can be painless and will actually give you an opportunity to improve your credit score with each payment.

Car loans can be much easier to obtain than personal loans, according to CarJunky.com. Should you default on the loan, the lender can simply reclaim the vehicle.

For subprime borrowers, a down payment or a trade-in may be necessary. The more you can pay up front, the better chance you have of obtaining a loan.

Although interest rates may be higher for subprime borrowers, many lenders will allow you to re-finance a loan after a one to two-year period. For each payment you make, your credit score will improve.