100% financing, with bad credit car finance

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100% financing, with bad credit car finance

3rd June 2010

Getting a car can take a lot of work, for many reasons. In terms of finance, it can certainly be a drag. First of all, you need to figure out exactly how much you can actually spend. After that, you will need to read up on the kind of car you actually intend to purchase. You might want to test drive all of the models that you are interested in purchasing, so that you can learn about the kinds of cars you like.

And obviously, there’s the issue of how you’re actually going to pay for the car which will without doubt be quite expensive. In the best scenario, you will have the cash available to spend on the car, and put down as a payment. The car is then completely paid for, and you have nothing to worry about. And in the best scenario, you will also have an absolutely brilliant, near perfect credit score.

Though in reality, the situation you will be landed in is really quite different. For most of us, this isn’t the case, and purchasing a car isn’t quite as simple as this. Many people find that they don’t have all of the cash available to put down on the car, for purchase. Moreover, a large percentage of people who purchase cars don’t have a good credit score.

100% financing might be able to help. 100% financing is an option for people who do not have the money stored away to just put down on a car. A 100% financing loan can help you no end, and these loans are structured so that you don’t have to just come up with any cash, at the signing of the loan. Instead, the entire purchase amount of the car is financed as a loan to you.

Obviously, if you have a bad credit score, you will need to go out of your way to find a lender who will actually give you a loan (if you do not go down the 100 percent financing route). Many lenders will refuse loans to people with poor credit, only lending to people who have absolutely stellar credit.

Even those who offer the loans to people with poor credit ratings, will often offer incredibly high interest rates. You might assume that car finance for bad credit does not mix with purchasing a car. 100 percent financing flies in the face of this, and might mean you’re able to buy the car you’ve been wanting.

Some lenders these days, in fact more of them, are offering 100% auto loan financing. Even for those with bad credit, they will offer these kinds of loans.

In order to qualify for this kind of loan, you should start by researching your current credit score. You should know where you stand in terms of credit score, as this is an important first step in agreeing a reasonable interest rate with your creditor.

All hope is not lost, and it could just be that 100% financing loan might be the way forward for you.


Posted in Car finance

 
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