Bad credit along with no cosigner will probably guarantee you to fail when you submit your file, even if there is nothing missing. However, there are some things you can do in order to get a car loan with bad credit and no cosigner. Here is what you need to know to get one.
How is it possible
It is possible because today, there is a thing called special poor credit auto lenders. It is a payment method that allows you to loan a car with no cosigner and bad credit, considering that your financial condition is able to pay back the loan. The key to this is the down payment and the lender of the car. If the down payment is big, then your credit payment will be less. Furthermore, there are other tips in order to enhance the possibility to loan a car with no cosigner and bad credit condition.
Pay attention to FICO score
Before you get a loan car on credit, you should understand what credit score is. The commonly required score to get you a car is usually above 500. If you feel that you will get under 500 credit score, then you can tweak it by paying a bigger down payment. If you are in a very bad financial problem or near bankruptcy, it is best to avoid getting a loan car even if you have a cosigner. This is because most of the time, your bankruptcy judge won’t approve it.
The Auto Industry Credit Score is very related to the FICO score and report. The report will show all of your past history regarding loans and credits, so the dealers or auto loan lenders will take a good look on the report. If you are trouble-free in any of your past credits, then your score will be higher and it is likely that your loan will be approved, even with no cosigner and bad credit condition. Paying on time will also increase the chance.
Having a good amount of hard cold cash
If you want to have a higher possibility so your loan will be approved, then there is nothing more helpful than having a good amount of money to use. The large amount will be used mainly to reduce the credit payment by putting a heavier amount on the down payment. Indirectly, the lender or car dealer will see that you seriously want the car and showing your capability to be able to pay the credit payment. On the lender side, this is also less risky since they get a lot of money first on the down payment, so your proposal would be likely to be approved.
Honesty is key
There is nothing better than being honest toward the lender or car dealer. Avoiding any misinformation or trying to tweak and cheat your credit score might improve the chance of success but in the future, you might feel insecure especially if the lender or dealer found out that you are cheating. Therefore, filling the credit application with complete honesty is a must. Also, you can build your reputation and credit score with consistent and honest credit payment. With that, you can get a car loan with bad credit and no cosigner.