When you need reliable car transportation and have bad credit you may think a dealership is your only option. But online car lenders may be able to provide you with a bad credit car loan with no money, at competitive rates.
Many online lenders allow consumers to get multiple quotes to ensure a competitive rate even when you have bad credit. Online lenders can save you hundreds of dollars over the life of the loan. You don’t have to take a high interest car loan from a dealership.
Getting a bad credit car loan with no money down, at reasonable rate, is possible with an online car lender. When you’re sitting in a dealership, they have a vested interest closing the deal right then and there. With an online lender, you can get approved for a bad credit car loan and car shop with no pressure.
How to get a bad credit car loan with no money down
InstantCarLoanTM has been providing car loans to people with bad credit, charge-offs, collection accounts, past bankruptcies or even repossessions for over 10 years. By going through InstantCarLoanTM you can get a great deal on your new or used car.
Why we chose InstantCarLoanTM
Borrowers with bad credit may lack the extra money to put towards a downpayment. With InstantCarLoanTM, no money down options may be available from a number of financing partners on approved credit. Their network of lenders are extremely flexible and will work hard to find loan options that work for you. Plus, your timely auto loan payments are reported to the credit bureaus and can help raise your scores.
CarsDirect has helped millions of customers get new and used car loans with custom tailored financing since 1998. With CarsDirect a tailored financial plan will get you financed, no matter what your credit scores.
Why we chose CarsDirect.com
Bad credit or not credit, CarsDirect can get you a financed for a new or used vehicle. They offer auto loans for all credit types. There are no application or processing fees to worry about plus a they offer bad credit loans with no deposit necessary to get approved.
LendingTree.com does your research for you. Get your credit score at LendingTree first, then you can start looking for auto loan programs that offer loans for people with your particular credit score.
Why we chose LendingTree
The simple application process at LendingTree makes saves both time and frustration when looking for car loans. Once the application is submitted, LendingTree will shop around with multiple lenders on your behalf and let you know if you’ve been approved. If you’re approved, LendingTree will let you know what offers you have available to you.
Interest rates for Bad Credit Car Loans
There’s no getting around the fact that with a bad credit car loan, you’ll have to pay a higher APR compared to someone with fair to good credit. The good news is that on-time payments are reported monthly to the credit bureaus, so you’ll have a chance to improve your credit scores.
Paying a higher interest rate is significant to how much interest you’ll be over the life of the car loan. According to Experian, here is an estimate of the interest rates you can expect to be offered based on your credit scores if you were to get a 48-month loan.
Understand car loan terms before you buy
Interest rate is the percentage of the loan amount that the lender charges to lend money. Your credit score, income, length of the loan primarily determines the interest rate you’ll get. It’s likely you’ll get a higher interest rate when you get a bad credit car loan but with consistent, on-time payments you may be able to refinance your car loan to get a lower interest rate.
Loan terms is the amount of months it takes to pay off the loan. Loan terms for bad credit car loans can go from 36 to 84 months. However, it’s best to pay off a car loan quickly since cars depreciate rapidly. Owing more on the loan than the car is worth is called being “underwater” or “upside down,” which is a risky financial situation.
Credit inquiries can be either “soft” or “hard”. Soft credit inquiries have no impact to your credit score, while hard credit inquiries will lower your credit score by a few points. A soft credit inquiry may be completed to prequalify for a car loan offer. But a hard credit inquiry will be required in all cases before a loan is finalized.
Applying to several lenders helps you find the most competitive interest rate. However, it can lead to your being contacted by multiple lenders, or even dealers when you apply for a bad credit car loan.
FICO is the most widely used credit scoring formula. They realize consumers are going to shop for the best rate when getting a car loan. That means multiple lenders may pull your credit report. To compensate for this, FICO Scores ignore car loan inquiries made within a 30 day period. Additionally, FICO looks on your credit report for car loan inquiries older than 30 days. If inquiries are found, your scores will consider inquiries that fall in a typical shopping period as just one inquiry.
For FICO Scores calculated from older versions of the scoring formula, this shopping period is any 14 day span. For FICO Scores calculated from the newest versions of the scoring formula, this shopping period is any 45 day span. Each lender chooses which version of the FICO scoring formula it wants the credit reporting agency to use to calculate your FICO Scores.
Best times to purchase a new car at a dealership
Skip early in the week.
Skip the weekend car shopping. The weekends mean dealerships are full and salespeople are busy. You can get a better deal by avoiding the crowd. Plus, you can get the salesperson’s undivided attention. Offers late in the day tend to get you a better deal. Considering visiting the dealership near closing time.
Shop at the end of the month or quarter.
Dealers and salespeople have monthly and quarterly sales goals they must meet to qualify for certain bonus levels. The end of the month (or the quarter) is a good time to go shopping. You may get a salesperson who desperately needs to meet their sales goals.
Purchase an outgoing model.
New model cars typically roll out during late summer and fall. Dealers need to make room for incoming inventory. This often creates a great deal of price flexibility and manufacturers frequently offer additional sales incentives, bringing their prices down even further.