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Purchasing a Car with No Cosigner and Bad Credit

Posted by autofinance on August 7th, 2019

Having a bad credit, as we know, is very horrible when it comes to getting loans or refinancing auto loans; although, it is something that can be remedied.

Bad credit could be as a result of a number of things; it could be a case of late payments or, even simply having been employed for a short time. It could also be a case of never having had a loan before or, not earning enough on a monthly basis to meet up your proposed lender's monthly payment requirements. Whatever the situation may be, getting a loan with bad credit is almost next to impossible.

However, pending when the remedy to your bad credit comes through, some credit facilities would still be open to giving you a loan provided that you have someone to co-sign for you. Preferably someone with great credit and this is usually the last resort taken by lenders; again this does not guarantee that guarantee that you will be approved for an auto loan. Even then, it is rather difficult to get someone who will be willing to co-sign on a loan unless that person is family and so you may as well be back at square one.

So now you do need to buy a car with bad credit and no cosigner. Rest easy, this article is for you. Despite the established fact that getting an auto loan with bad credit and no cosigner is next to impossible, there is a solution for you:

• You may want to look into some poor credit auto loan facilities. These facilities take a close look at the applicants’ income level and their actual ability to pay back their loan. These facilities may have a higher interest rate but, you will still get your auto loan.
• Have a decent down payment. To have a poor credit auto loan facility to back you up, you would also want to have a very decent down payment ready for as this would help to boost your application for a car loan.

Here some tips that can help you still get a car despite not having a cosigner and having bad credit.

• Know your credit score: Knowing your credit know would help you to know just how much of a cash deposit you need to be looking at to get an approval
• Save up your cash: Having cash savings to put down a deposit is a huge plus and would boost your loan application.
• Say the truth: This may not be normal but it is necessary, be honest and upfront about your situation and what you want when dealing with your lender as it would help to figure out the best plan for you.

Read more about cosigners with https://www.thebalance.com/how-a-car-loan-affects-the-credit-of-a-cosigner-527158.