Buying a car with a bad credit score and no money down is quite difficult. Of course, you can improve your credit score, but it takes a long time and a lot of discipline.
Sometimes, buying a car may be a matter of urgency. If you have taken a huge loan, then getting your credit score back to normal is not easy.
In this case, you have to look for an auto loan that allows you to keep the lowest monthly installment and the shortest period. There are certain dealers that deal with such kind of loans.
If you have a bad credit score, you need not lose heart. You can still buy the car you wish to drive. There are some tips you should keep in mind when you have a bad credit and want to opt for a no money down approval.
1. Continue your job – You may be tempted to switch jobs frequently for that increased income. But money lenders’ who cater to people with bad credit, often do not appreciate this.
If you have been in a steady job for a long time, it is a plus in the eyes of the lender. It means that you will pay your dues on time and also that your payments will be easier to track.
The longer you last at a job, the better you look to the lending societies or banks. If you change jobs often, it is a red flag for them.
2. Open and maintain a bank account – This is a sure sign for the banks or lenders of your responsibility.
If you open a bank account and maintain it without overdrafts and pay bills on time, not only will you improve your credit score but also increase your chances of getting an approval for loans.
You don't need to put a large amount of money in your bank account; it just needs to be well maintained.
3. Don’t change your residence – Just as continuing in a job is a good practice, so is staying in the same place for a long time. It shows you are reliable.
If you move frequently, the lenders will be worried as to how they will find you if you default on a payment. Your credit report shows your previous addresses.
4. Pay bills every month – Even if it is a monthly phone bill, make sure you pay on time and regularly every month. Regular payment of bills will not only improve your credit score, but also make the lenders tension free when they approve your loan.
5. Make a small down payment – No matter how small, make a down payment if it is possible for you. It can be as small as $100, but even a small down payment can improve your image in the lender’s eyes.
Alternatively, you can make a trading of your old car, so that you need not make the down payment in cash, but your credit report will be unaffected anyway.
6. Read the papers before signing – This is a very crucial part of a transaction. Before buying a car, go through all the papers thoroughly and read carefully what is written.
Make sure that whatever the dealer had mentioned is given in writing. Finally, make sure the interest rate is what you can manage and the tenure of the loan.
Only when you are convinced of all the terms and conditions, sign the paper.
There are many dealers and lenders specializing in auto finance, but out of all these, there are a few with whom you can safely make a transaction without the fear of being taken for a ride.
1. Auto Credit Express – Auto Credit Express is a leading provider of lender and dealer connections in USA and Canada.
Whether you are looking for a new car or a used car, and whatever your credit score is, they get your request processed through special financial agents and have your loan approved.
They deal with bad credit, no money down, bankruptcy, rejected approvals or even no credit cases.
With that being said, here are the reasons why it made it to the top of the list:
Pre-qualification form is easy, can be filled in 30 seconds
Even with a monthly income of as low as $1500 is eligible for a loan if you have a bad credit
Specialists in first time buyers, bad credit, no credit, bankruptcy, delinquencies, and repossession
2. Car.Loan.com – Car.Loan.com is the world leader in providing car loans to people with bad credit and other special circumstances.
Their network of dealers has cleared more than $1 billion of bad credit auto loans.
Furthermore, here are some reasons why it is the second best:
Easy and free no-obligation entry application
No application fees
Specialists in auto loans for bad credit, low credit, no credit, bankruptcy, and first time buyers
Same day approvals
Thousands of requests processed per day
3. myAutoloan.com – myAutoloan.com connects you to their lenders directly, so that you get the perfect deal. You may opt for new, used or refurbished cars.
No matter if you have a bad credit score, myAutoloan.com can fix up an approval for you very quickly.
Two minutes quick and secure application form
Up to four matches with lenders
Refinancing your current loan option available
Receive online loan certificate and verify within a day
Specialists in processing bad credit accounts
4. CarLoan2.com – CarLoan2.com has a nationwide lender network who treat bad credit as special cases and work quickly to approve no money down loans.
A specialist works with you and assigns you the best dealer, who can provide you the car of your choice within your terms without any hassles.
In addition, here are the reasons why it’s good for clients with bad credit:
Secure and simple online application form
Bad credit, low credit cases approved
99% approval rate
Safe and secure process
Loan approval within 48 hours
Low income and bankruptcy also considered
5. Garston Motors – Garston Motors operates in and around Ontario. It specializes in bad credit cases and gets loan approvals for them quickly and smoothly.
It connects buyers with car and truck dealers and overall works in improving your credit score.
Here are the following advantages
Sixty-second easy application
Financing for bad credit, low credit, no credit, repossession and bankruptcy
Credit recovery car loans available
6. Suburban Auto Finance – Suburban Auto Finance give you Guaranteed Credit Approval that will help you buy a used car definitely.
They also offer you the option of a vehicle trade-in.
Plus, you will enjoy the following benefits when you apply for a loan here:
Guaranteed Credit Approval
Financing for low monthly income
Bad credit, low credit, bankruptcy cases specially handled
Low Interest Rate
Quick and easy processing
When you wish to apply for a loan with a bad credit and no money down condition, there are some steps you must follow to make the transaction smooth and hassle-free.
1. Get your loan pre-approved – This step basically gives you an idea of where you stand and how much you can pay and what amount you can borrow.
2. Visit the car dealers – You can pay a visit to the dealerships that your loan service provider connects you with. So that they can go through your credit records and both of you can decide which loan scheme will work for you.
3. Shop around their car lot to see which car fits your needs and requirements and also is affordable for you.
4. Read and sign the paperwork.
As you can see, it is very easy getting a loan approved through these companies.
They always welcome clients with bad credit no money down car dealerships near you, and wherever you are.