You want a car loan with a bad credit history and also with no down payment option? Well, it is really hard to get such lender; but not impossible. There are a few providers who offer the customers with a bad credit history a vehicle finance where you don’t have to make any down payment.
But how will get that? There are a few steps that you need to follow for that:
Credit history checking: Any money lenders will do this first. When you have a bad record of credit and you cannot afford to pay money as down payment, your chance of getting loan reduces. But if you have paid the monthly installments on time for last 8 months to 1 year, the lenders might reconsider your application.
The car you want to buy – Before lending money to you, the money lenders will check the condition of the car you are buying, its type, average value, mileage and the person from who you are buying. All these factors will help them decide whether they will give you loan inspite of bad credit and no down payment or not.
- Getting a loan for a van or family car is easier than a sports car as the latter has higher risks. Moreover, it is better to take a new car rather than a used one as you will get better interest rate for the former.
- It’s always wise to buy from good dealers as they have the reputation of selling cars in good condition. If the condition of the vehicle you want to buy is poor, it’s very unlikely that the lender will give you money for it. To tell you in simple terms, it’s their money they are putting into your car. So, they will make sure that they get it back without fail.
- The average value of the car also helps in deciding whether you are suitable for loan or not. The lenders use various ways as well as sources to determine the value of the automobile. The amount of loan depends on it. If the car you have chosen has higher market value, you will get the finance without much hassle.
- Mileage – If the vehicle has run more miles, it will most probably have some issues. Thus, the lenders will not like to finance it. On the other hand, if it has run only a few miles, it will get finance easily.
- The dealer you are purchasing from – Even though you think how it matters, but in reality it is very much significant. If the dealer is reputed and the money lender knows him very well, you are going to get the money for it conveniently, even if you have a record of bad credit and you have no money for down payment.
So, if you meet all these criteria, you can get the car loan with bad credit and no down payment.