For folks with poor credit or no credit at all, financing a car can be an intimidating task. Maybe you’ve damaged your credit rating with unpaid bills or a repossession. Perhaps you’re just starting out and haven’t been able to establish your credit rating. No credit bad credit car loans aren’t insurmountable.
You just need the right car dealer and lending institution to help you on your way to car ownership and an improved credit score.
No Credit Bad Credit Car Loans Can Happen For You
Your lack of a credit history or your poor credit history isn’t an insurmountable obstacle for obtaining a car loan. The automotive loan business is highly competitive, and that means that there are plenty of lenders interested in you.
Many companies will consider your current financial ability in addition to your past history. You may need a large down payment, a co-signer or both, but there’s a good chance a car loan is just around the corner.
Can My Trade-In Count As A Down Payment For My Vehicle Loan?
You certainly can use your current car as a down payment. However, depending on how much value the car has, what the equity is, and if there is an outstanding loan, additional down payment money may be necessary.
Can A Cosigner Help To Get A Car Loan?
In no credit bad credit car loans situations, a cosigner goes a long way in helping you get approved for a loan. However, even with someone cosigning your loan, you will still be required to meet the necessary income requirements for the size of the loan.
How High Will The Interest Rate Be On A Bad Credit Car Loan?
There isn’t just one simple answer to that question. Auto loan interest rates are based on a broad array of factors. The lending institution will take into consideration how much the loan is for, as well as your credit profile. Typically, the higher your credit score is and the more money you can put down initially, the lower the rate will be.
The make, model and year of the car play an important part in determining the interest rate you’ll receive. Generally, the older the vehicle is, the rate increases.
Don’t Jump At The First Car Or Offer
With the exception of a house, a car is probably the most expensive purchase most of us ever make. You need to do your research and go in with your eyes open, armed with all the information that’s available to you.
Do your homework beforehand to make sure you’re going to get a good deal. If you’re too desperate to get a car quickly and work on reestablishing your credit, you could wind up paying a lot more than you should.
Look at more than your monthly payment. You may be enticed by a low monthly payment and fail to see how much that car is actually costing over the course of the loan. Be aware of added extras that only add a few dollars a month; over the life of the loan that seemingly small charge can really add up. You also need to decide if the extended warranties are worth the cost, compared to the likelihood of needing the protection.