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How to Buy a Car with No Money Down
By http://www.LendingAndCredit.net
If you have no money to use as down payment for a car loan, you can still getthe car. However, there are some advantages of purchasing a car and making adown payment. When you buy a car and make a down payment, it usually leadsto low-interest rates which give you low monthly payments in the end.
This is however not possible for everyone because you may not have muchmoney to make those down payments. How this is possible and what do you needto do to if you decide to go for this option? Here are 4 points you can use startingtoday.
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1. If you do not have a credit account such as a credit card, establish one to getsome sort of credit history before applying for an auto loan. There are two typesof credit cards you can apply for. These are secured and unsecured credit cards. Itis very difficult to get approved for an unsecured credit card without having anysort of credit history. So we would advise you consider getting a secured creditcard instead.
Over a period of 6-12 months you'll begin to build your credit score. It isimportant to confirm with your bank that issues you with the credit card that yourcredit information will be reported to the credit reference agencies. The thing isthat some banks do not report this information to the reference bureaus if theygive a secured credit card.
2. Lenders who give no-money down car loans require you to have a good creditscore. It's as such important to check your credit report before completing yourauto loan application. To improve your credit, minimize credit enquiries, paymore than the minimum balance payments and make payments in time. So as youcan see you have plan this ahead of time, ideally 12 months ahead if you want tobuy your this way.
3. If your situation is so bad that getting any of the above two to work out, oryou do not have the time to build or repair your credit history, then try to get arelative or a very close friend to co-sign the loan with you. The decision of theloan lenders will be dependent very much on the credit rating of the co-signer. Ifthey happen to have an excellent credit score, the lender may simply give you theloan without any problems at all, and without asking you for any money down atall.
4. This is the last option we know of if you want to by a car and you do not wantto put any money down: car assumptions. This does not happen very often.However, if you know someone who is trying to get rid of their car, you canassume their car loan. First, discuss it with them on a personal level. Then you cancontact the lender and enquire if they allow car assumptions.
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The only tricky part is that you have to qualify credit-wise for the loan. The goodside is that this does not require money down. So again even car assumptionsmay require that you have a good credit score for it to work.
Here’s what you have to do right now: visit our website at:
http://www.LendingAndCredit.net
more tried and true personal finance tips you can apply to build your credit, getany type of loan you need and build more wealth.
