Getting A Car Loan With Bad Credit

By John Reyes

If you have bad or zero credit it can be pretty tough to find a cosigner. There are a few companies willing to offer you a loan without a cosigner however. If you're currently having trouble finding a cosigner, these companies are the way to go. You may have to pay a higher interest rate with these kind of loans. In many cases, a higher down payment is also required because of the increased risk for the lender.

If you currently have zero credit, meaning it's your first time purchasing an automobile, you're going to get it a bit easier than if you have bad credit. A lender considers zero credit less risky, because there's no previous instance of you not paying your bills. You just haven't started your credit yet. So if you are purchasing for the first time, make sure that the lender understands your credit is at zero and you do not have bad credit.

If you're considering buying a used auto, you can also use a no cosignatory car loan. Used cars are more economical than brand new cars and are more popular by the day in these rough economic times.

If you have had trouble qualifying for a car loan before, try the no cosigner route. Look on the Internet for suppliers of no cosigner loans and compare rates and conditions. If you're toying with the idea of buying an American car, you can negotiate about the credit rates because of the credit crunch the automobile companies are in. Prepare and make sure you get the best possible deal!

About the Author:

John writes about financial matters and car financing. He also writes about geld lenen auto and lenen in Dutch.