Can you remember the last time you heard of someone getting car loans for bad credit with no money down? For most of us it's never and because we rarely hear of such things occurring we tend to think that the mere thought of such a thing is impossible, but it actually is very possible. In fact there are at least three great ways that I'm going to share with you that will help with getting auto financing with below average credit, while never making a down payment.
Using a Trade-In On Car Loans For Bad Credit
One of the easiest ways to make sure you don't have to place any money down on a new or used vehicle is to simply trade-in the vehicle you currently own. Most dealerships are able to take the funds that you would have received from your trade-in and applying it to what your down payment would be. Once that has been taken care of you simply have to inform the dealer that you're interest in financing a car and just like that you will be on your way to getting your loan. The only thing that you need to beware of is whether or not your trade-in covers the entire amount due at signing, otherwise you could be placed in a position where you will have to pay the rest off out of pocket.
A Co-Signer Can Help With No Money Down Auto Financing
The thing about having your down payment waived by dealers in your area is that it usually only works if you have a good credit score, but if you don't have a trade-in automobile and poor credit there is another method. This one requires the aid of a co-signer whose credit history is much better than yours and is willing to finance a car for you. This will require that person to put their credit on the line and make it easier for you to get financed with no money down; however, there are some consequences and benefits to go with this decision. If for some reason you are to default on your loan there will be negative marks on both applicants credit score, but it can also help both persons if you are on time with each monthly payment.
Repairing Your Credit For Bad Credit Car Loans
As I've already stated the only way to get auto financing is to have a high FICO score, and if you're unable to utilize the other two methods you will have to fix your credit before applying for a loan. There are various websites and sources that you can utilize to get a hold of your credit report and find out what is hurting your score. By doing this you can go forward with paying off as many charges as possible, which will then cause your FICO score to improve. This may not be the easiest method, but it can still be done to help you get the type of automobile you're looking for.
Some other methods include visiting a special website like this one, which may not require a down payment on all of the vehicles offered. There are also are buy here pay here dealerships in certain areas that can offer you the type of financial assistance you need with no money down as well. Any of the methods can be useful and help guide you towards the type of transportation you desire.