Car financing is an unpredictable process. Few lenders may reject you for being a sub-prime borrower while others may approve you without any hesitation. But, there is one thing that remains constant for a bad credit car buyer and it is down payment. Lenders asks people with bad credit score to put at least 10% of the total car loan amount as down payment.
Usually, people use their savings for making down payment but not everyone has the financial capacity to do so. It becomes quite a problem when you don’t have money or you don’t want to spend your savings on down payment. In such a situation, a bad credit no money down car loan program can become a blessing for you.
Am I eligible for Bad Credit No Money Down Car Loans?
Yes, you can apply for the no money down car loan program even with bad credit history. You can be a first-time car buyer, a businessman or even a part-time employee. To be eligible for the loan program, you need to fulfill the following criteria:
>>You must be at least 18 years old
>>You must have valid SSN
>>You must earn minimum gross monthly income of $1500
>>There should not be repossession in the recent past
>>You should not be currently bankrupt
How can I get Approval on No Money Down Car Loans with Credit Issues?
Previously, car buyers with credit issues used to feel depressed because of their contact loan rejection. But today, lenders understand that problems related to credit score are common. They don’t have any problem in providing bad credit auto financing programs. You can improve your approval chances by:
1. Keeping all your financial documents like bank statements, pay-stubs, receipts of utility bills, etc. ready. The lender will require it to check and ascertain your current financial condition. If he/she is convinced of your capability of making regular payments, you will get guaranteed approval.
2. Finding someone with a good credit score and lower debt-to-income (DTI) ratio to co-sign your loan contract. If you have a co-signer, the lender will be tension-free and won’t worry about getting back his/her money. It will give you an added advantage.
Now that you know how easy it is to improve your auto loan approval chances, don’t wait anymore. Apply now to get approved for bad credit no money down car loans program and buy a car of your choice.