0% Discount Car Loans For Drivers With Bad Credit – 3 Frequently Asked Questions

For most of us, our cars are an integral part of our lives. There is no easy way to replace a car’s role in our lives if we cannot afford a car. Other means of transport such as bicycles, trains, buses, taxis and the subway can be sufficient in an emergency, but are not a good substitute for your own car in everyday life.

However, the most frustrating situation is when you have the monthly income to afford the car payments but can’t seem to get a car loan. The two most common reasons for rejection of a car loan are:

a. don’t have money for a down payment

b. have bad credit

The reason most drivers with bad credit and no down payment ready have trouble getting accepted for a car loan is NOT just because they have those two red dots against them. Sure, that’s part of it. However, the real reason for all application denials is that they are buying a loan the wrong way.

Finding 0% discount car loans for drivers with bad credit doesn’t have to be a pain in the neck. Here are answers to 3 common questions about 0% down payment car loans:

1. Why do auto lenders prefer you to make a down payment?

A: Put yourself in the shoes of a car lender for a moment. You’re asking them to think about basically giving you loads of money to do whatever you want (in this case, to buy a car). And they need some kind of assurance that you will actually pay them back.

Of course, one way lenders assess their credit risk is by checking the borrower’s creditworthiness (FICO). Another option is to see how much money the borrower is willing to put up for the purchase from their own money. Basically, the more the borrower can raise, the less risk the lender takes in the event of a possible future loan default.

2. Besides a down payment, what else can I do to improve my chances of getting a car loan?

A: If you can’t make a down payment, you have other options to offset the lender’s risk. One such option is to buy a cheaper car. The smaller the loan amount, the lower the risk for the lender.

3. What’s the secret to finding the best rates and improving your chances of loan approval?

A: To look for the best rates and improve your chances of loan approval, make sure you only apply to “bad credit auto lenders.” In fact, you should apply to at least 5 of them online before visiting a dealership to buy a car. If you do, make sure you decline the first offer you get from everyone. Find out the best offer anyone is willing to give you before you sign on the dotted line.

Consider the answers to these 3 frequently asked questions to find the right car loan deal even if you have no down payment and a low credit score.