Is Buying a Car with Bad Credit and No Money Down Possible?

Many people ask if buying a car with bad credit and no money down is possible. Sadly, the answer to that question is generally no, unless you can find a way to improve your bad credit and assure the bank that you are not as big of a risk. Or, sometimes you can find a certain advertising special where a dealer will finance someone with bad credit without requiring any down payment–but you will most likely have to be the first one there because they will only offer the deal to one person. Finally, you may have a small option to get a car without paying anything upfront, but you will have to pay in other terms–an extremely high interest rate.

So, if you are looking at buying a car with bad credit rating then your best bet (and least costly bet) is to find a way to increase your credit rating. You can do this one of two ways:

First, you can clean up your credit history. Frankly, this is highly recommended no matter what if you have bad credit, and should be the first step that you take in getting any type of loan. It will save you money and help you get on top of your financial situation, which should be your ultimate goal.

Second, you can get someone who is will to co-sign on your car loan. This is probably the most common way for people with bad credit to get an auto loan, as it is much quicker than getting your credit history cleaned up and does not cost you (the borrower) anything–all it does it make it possible to get a car loan. And, depending on the credit quality and income of the person who is co-signing, you may actually end up qualifying to buy the car with bad credit and not having to pay any money down.

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