How to Buy a Car With Bad Credit and No Down Payment
Do you know that even with a bad credit score, you can still own your dream vehicle? When it comes to credit history, the impact it has on whether you will get your loan approved for your car or the interest you will incur when you make your car purchase is seen. Your credit history is a signal to lenders whether you can be trusted for a loan or not – a credit history and score has that power.
However, bad credit should not be a barrier from getting your dream vehicle either by loan or by purchase. So, what tips or methods are there to allow you to purchase your dream car with ease even on bad credit? Let’s get started!
How to Buy a Car With Bad Credit and $0 Down
Get in Tune With Current Interest Rates
Even with a bad credit score, nothing can stop you from getting informed on current vehicle loan rates. Doing your research makes it easy to know what to expect with your credit score.
With a good credit score, it’s much easier to get a good interest rate on a car loan. Unfortunately, this is not the case with a bad credit score. The lower your score, the higher your interest rate will be. It can even increase your interest rate by up to 50%!
The price tag on your car, as well as the monthly interest rate on your vehicle, is affected by your credit score. So, the best thing to do in this situation to avoid an overcharge – because some lenders and dealers do so – is to know what is obtainable and make your bargains on that.
Work on Your Credit
One of the best advice you may receive is to work on your credit score. A bad credit score lowers your chances of buying a car on easier terms, so the best thing to do is plan ahead and work hard on improving your score before buying or loaning a car.
A few things you can do are:
- Report and properly handle credit report errors
- Pay past due accounts
- Lower your credit utilization to no more than 30%
Those strategies could go a long way in getting you better terms when you finally want to make your car purchase.
Buy Only What You Can Afford
This may seem obvious already, but a lot of us (even those with bad credit) still go for expensive cars. Going for an expensive car with a bad credit score does not play well for your credit report.
Take a moment to look at your budget. What do you have left over when you pay your bills each month? That may give you a better picture of what you can afford. Check what car you can afford on your budget and keep to that no matter which flashy car catches your eye.
Be Careful About Your Deals
In simple words, watch out for scams and fraud. You might be surprised that persons with a low credit score are usually the most targeted for scams.
While it is fun to buy a car, don’t let yourself get swept up in all the excitement – stay focused and aware and don’t fall prey to the tactics of scammers. You can “cross your Ts and dot your Is” by thoroughly perusing paperwork for loans that you are offered, especially ones that sound too good to be true.
Get Your Dream Car – Even with Bad Credit – at Dan Cummins
In conclusion, even if you have a bad credit score, you can get your dream car. You just need to do your research and shop around.
Check out our huge line of new and used cars at Dan Cummins Chevrolet and Buick, where we treat you like family. At the end of the day, we care more about your satisfaction than our profit – so we’re not like a typical car dealership. We’re a trustworthy car dealership. We care about our customers and want to make your experience the best it can be. So come check us out.
You can also browse used cars from brands you love here. In addition, we also sell car parts and accessories for a host of car brands. Ready to learn more? Click the button below or contact us at 877-661-2805.
How to Buy a Car With Bad Credit and No Down Payment | Dan Cummins Chevrolet & Buick – Louisville, KY