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Friday, January 15, 2021

How to Get a Car Loan With Bad Credit and No Down Payment

 


Have a few hiccups on your credit and your cash is strapped? But you absolutely need a new car? These things happen and there are options for those that are in a tough situation.


In this guide, you'll be able to learn how to get a car loan with bad credit and no down payment.

 

1. Shop Within Your Means


When you're looking for an auto loan, the first step would be to ensure that you are shopping within your means. This means understanding what your budget is like before you even think about stepping onto the car lot.


This also means accepting that the car you're going for will have to be used, as these options are typically much cheaper and affordable compared to brand new off the lot cars. Don't aim for the greatest option out there, just something that is reliable and gets you from point A to point B.


2. Shop Around for Loans Beforehand


Don't try to get to the dealer and then find a car before finding a loan. Find a loan beforehand so that you know that you're at least preapproved for a certain amount. Do note that this will ding your credit, so try to find what the minimum credit score for loans is from the institutions are beforehand.


Also, keep in mind that this loan may not be the final loan in the long run. It might be easier to get obtain bad credit car loans while you work on your credit score. You can always look to refinance when you've raised your credit to stop paying high-interest rates.


There are multiple options for lenders in this case. There are banks, credit unions, specific finance companies, or car dealerships themselves. Just be aware that every time you request a loan, you are dinging your credit, so try to get as much information as possible before applying to ensure a low denial rate.


For those looking to repair credit, check out the best credit repair companies today.


3. Learn to Negotiate the Price


Your car is not a set in stone price either. You may get sticker shocked, but don't fret. Most car dealerships offer negotiated prices to save you money.


Do an inspection of the car and see if there was anything they missed. Inquire about how long it has been sitting on the lot, as it may be an opportunity to haggle it down so that they can get rid of it.


How to Get a Car Loan With Bad Credit and No Down Payment


Now that you know how to get a car loan with bad credit and no down payment, you can be on the road to getting a new car (pun intended). Just don't let a dealership or loan officer walk over you or make you feel bad. These things happen and often they are understanding.


If you want to learn more financing tips and tricks, be sure to check out the rest of the blog. If you know someone in a sticky situation that is in need of a car, be sure to share this article with them.

 

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