Bad Credit No Money Down Car Loans – Valley Auto Loans

100% Bad Credit Car Loan Application Acceptance Bad Credit No Money Down Car Loans

In today’s iffy economy, buying a car with bad credit or no credit may seem impossible. The fact is, we know that everyone needs a car regardless of their past mistakes. And with our massive network of dealers and lenders anyone can get a car loan. However, before one decides to attempt to get a car loan with bad credit, it is important to take the time to know what to expect and how to get the best loan possible.

It is vital to find the vehicle that will meet the driver’s needs. A person who only needs occasional transportation over short distances can choose an older car with more mileage than someone who plans on using their vehicle for long commutes. Likewise, a family may need a large vehicle while a single driver can choose something a bit smaller. The size, age, and condition of the vehicle will determine its price, which in turn determines the monthly payment on the loan. Likewise, larger and older vehicles tend to be less fuel efficient. While this might not effect the loan payment, the high price of fuel can erode a person’s bank account. Lastly, take into consideration any repairs the vehicle may incur. A car with high mileage or multiple owners may have more problems than are readily noticeable.

When a customer comes armed with their credit score in hand, they know roughly what to expect as far as interest rates. Subprime scores are those that are under 680. The lower the credit score is, the higher the interest rates become and the more difficult it is to obtain a loan at all. However, an individual can show their credit-worthiness regardless of their credit score. They simply need to observe a few key rules.

Steady Income

Proof of income is vital to receiving a car loan. Show employment contracts, paycheck stubs, or tax documents as proof of regular income. Potential borrowers must be ready to give the name and number of the employer so that income can be verified. If the borrower is self-employed, copies of paid invoices, lists of customers, and tax documents might be sufficient. That borrower may have to supply references who can corroborate income.

Show Stability

The longer one lives at the same address, the better their chances are of obtaining a vehicle loan. A red flag is raised every time a person moves from one place to another. Show proof of residence by bringing copies of utility bills or mortgage receipts. If the borrower is a renter, he or she should have the name and a good contact number of the rental agency so their residency and payment history can be verified by the lender.

Research Loan Rates

Along with knowing one’s own credit score, a borrower should take some time to learn what kind of rates are standard. Many vehicle advertisements state that zero percent down is available; the fact is, this is seldom offered even to people with the best credit. When zero percent financing is offered, the vehicle’s price increases as well. Likewise, those with bad credit cannot go into a lender’s office expecting to get the best rates. However, they should be able to tell a reasonable rate from an outrageous one.

Get a Cosigner

When someone has very bad credit but needs a car, it is not uncommon for that person to ask a cosigner to sign the loan along with them. The cosigner agrees to take on the responsibility for payments in the instance that the initial borrower cannot continue. This is very typical of young people who have yet to establish credit, but it can be used by anyone. A parent, spouse, or even a friend can cosign on a loan. It is important that the initial borrower has good credit and is trustworthy. Both signers will have their name on the loan, and thus both signers must be able to trust each other.

No Money Down

Purchasing a vehicle with no money down and with bad credit are actually two different needs. Though they sometimes go hand-in-hand, there are those who have good credit but no cash. To get a vehicle with no money down, consider trading in an existing car in its place. Otherwise, proof of income may be sufficient to get a no money down loan.

Driving is a regular part of daily life. No one should be left without the ability to get to work, school, or run errands as they need. This is why it is important for anyone, regardless of their credit, to be able to get a vehicle. Best of all, getting a loan can help to raise one’s credit score. As long as payments are made on time, there are only benefits and no risk to getting a new or used car.