Welcome to weekly auto finance questions on Lotpro. This week, questions on credit score, buying with limited credit history, and options for buying a car with zero down. As a reminder, every week we'll pull three questions from our servers to answer for everyone every Sunday.
Can I Buy a Car With No Credit History?
Yes you can, but with no credit history or very little credit history, you'll find many of the good car dealerships for no credit will be the same choices as those who have poor credit. While this may not seem entirely fair since you've never proven yourself to have bad credit, the same can be said that you have not established a good credit history either.
The good news however is that without any black marks against your credit, you should be able to build it fairly quickly if you finance through a lender that reports your timely payment history to the credit bureaus. While it maybe tempting to go all out on your first car, go affordable so that you can quickly pay off your debt and do so in a timely manner so that you can take advantage of your improved credit rating on your next vehicle.
Can You get a Car Loan with a Credit Score of 570?
A credit score of 570 would be considered poor or bad credit in the eyes of many lenders, and is well below the 640 benchmark that many consider sub-prime. When looking to buy a used car with bad credit, you will need to find an auto financing company that specializes in bad credit like those partnered with Lotpro.com so that you can not only get a car, but also to improve your credit score and get a better rate next time.
How do I Buy a Car with No Money Down?
First are you looking to put no money down on used cars or on a brand new car? If the idea is to put zero down on a used car, then you are going to need to at least have a trade in to offer as a down payment. Even if the car is an outright junker, it maybe worth offering up so that a dealer has something they can pump up the value on though the dealer is likely to inflate the car you intend to buy by an offsetting amount.
In the case of a new car, you have more options then many used cars for sale in terms of zero down. Monthly lease specials can often have zero down specials, or a dealer who is interested in working with you may take the cash rebate as a means of down payment or may pump up your trade in as discussed above. In many cases though its entirely up to the dealership as to what sort of games they'll play on your behalf.
Have a great rest of the weekend and we'll see you again on Monday.