How to Buy a Car with Bad Credit and No Money Down

Trying to find auto loans with bad credit and no money down can be stressful. Knowing that you have bad credit and do not have enough funds for down payment, most lenders will not accept your application. However, there are some lenders that are willing to consider options that come as close as zero down car loans.

Bad credit ratings and lack of cash for down payment should not dampen your dream of financing a car. If your purchase can wait, do that. Instead of opting for no money down bad credit car loan, take certain measures that can make you a more attractive customer. The first is to improve your credit rating. Use this waiting period to repair your credit by paying off outstanding bills or debts. Also, review your credit report for any mistakes and have them corrected. All this will add up to a cleaner credit report opening up better loan options for you.

But, if you have to buy a car now and do not have adequate funds for down payment, consider borrowing from friends or relatives. A significant down payment reduces the applicable interest rates and the loan amount. This will save you thousands of dollars over the life of the loan. Car loan no money down bad credit does not really help in the long run as most lenders add the down payment to the loan amount and charge higher interest rates. You end up spending a lot more.

While there is no guarantee that lenders will be willing to consider your application for no money down bad credit car loan, there are some lenders that offer zero down car loans with the requirement that you make the down payment with your credit card. A few other lenders are willing to let you trade-in your old car in lieu of the down payment which makes the loan as good as a no money down bad credit car loan.

Before applying for no money down bad credit car loan, learn about the qualification criteria. Documentation plays a big role in getting approved for auto loans with bad credit and no money down. Therefore, learn about the various documents that may be needed to support your application for zero down car loans. Also, shop around to learn more about the offers available. Seek free quotes from multiple lenders to compare the offers, and find the best deal.

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