If can be tough to negotiate a good deal on a car when you have bad credit. The lender may be a bit leery about extending credit to you because they worry that you might not have the ability to pay it back. However, the reality is that although you've had some difficulty in the past, you're ready to turn over a new leaf. You want to get a car so that you can get back and forth to work and handle your daily responsibilities.
Today, credit is essential for most big financial transactions or purchases, like buying a car. However, it is still possible to buy a car with no credit, or with a little bit of credit. Here are a few ways you can do it.
Save Up and Buy with Cash
You can buy the car by saving up enough to pay in cash. This will prevent the need for financing or taking out a loan for the car.
According to the Small Farmer's Research Center at Alabama A&M University, there are two major credit scoring models that most lenders use to determine whether you have great, good, or bad credit. The FICO score ranges from 300 to 850, while the VantageScore falls between 501 and 990. Should your lender determine that your score falls under the bad credit category, you'll need to locate an auto dealer who provides bad credit auto financing in order to get the car you need to get around.
When it comes to buying a car, you can save a lot of money by choosing used over new. While you might not get the new car smell when you buy a used car, you will get the benefit of knowing that you got a quality car for less money. This is particularly true when you take the time to do your homework before you head out to the dealerships.
