Bad Credit Car Loans No Money Down

Can you get a bad credit car loan with no money down?

There is no solid answer. Having no money down does not mean you cannot get a bad credit car loan, but it does not make it easy.

There are really 3 kinds of bad credit. Good Bad Credit, Bad Bad Credit, and No Credit. I will elaborate more on these particular types of credit on future posts, but will offer a short description of each, and discuss the prospects of buying a car with no money down.

Good Bad Credit

Good Bad Credit customers have had good credit at one point in their life. They may have had a recent bankruptcy. They may have had a repo a year or two ago, but the rest of the credit bureau has been relatively undamaged.

With Good Bad Credit, the majority of your credit bureau contains accounts that have been paid as agreed.

Bad Bad Credit (aka Really Bad Credit)

Bad Bad Credit customers have few (if any) paid as agreed credit accounts. Often, they will have one or more repossessions, some charged off credit cards, some collections, and maybe a judgement or bankruptcy filing. The key difference here between Good Bad Credit and Bad Bad Credit is the lack of GOOD ACCOUNTS.

No Credit (aka First Time Buyers)

The “First Time Buyer” credit profile is the most difficult for lenders to rate. Every time a lender decides to do a first time buyer program, the lender stops the program 6-12 months later because they lose too much money. Having no credit means there is nothing on your bureau, or maybe only one or two small credit cards that have been open for less than two years. No credit customers can be classified as Bad Bad Credit customers very quickly with just a collection or two because the lenders do not have any good accounts to offset the bad accounts.

How do the 3 credit types relate to down payment?

With the current crisis in the lending industry, as of right now, only Good Bad Credit customers have a decent chance at getting a bad credit car loan with no money down. As lenders change their programs periodically, more and more Bad Bad Credit customers get approved for auto loans with less money down and even no money down. First time buyers always need some money down. With the current economy, first time buyers need as much down payment as Really Bad Credit customers unless they have a cosigner. A cosigner really only helps people that have not established a credit history yet. The cosigner needs to have enough income to more than cover their own debts, and have good credit. A cosigner does not help people with really bad credit.

WashingtonAutoCredit.com helps people with all credit types buy a vehicle, and rebuild their credit. Some credit types require more down payment than others. Any dealer that tells you different is not being honest. We have a program to help you get approved. At the very least, you will KNOW what it takes to drive that new car home today.