WHAT’S A GOOD CREDIT SCORE TO BUY A CAR WITH NO DOWN PAYMENT ?
Hypothetically, what if you don't have a down payment for the car you wish to buy? Can you still buy the vehicle? Many consumers like you might wonder about this same question. Experts at Motor City MINI can help you decide by assessing your credit score so that you can purchase your desired car with confidence.
What Good Credit Score is Needed to Buy a Car?
Before we proceed with purchasing a car without a down payment, let's discuss credit scores.
A credit score decides the likelihood of a borrower repaying the loan. The score takes into account all your debts, old and new, and looks at how they're being managed. Therefore, it will be a key factor in deciding whether you will receive a loan or what kind of interest rates apply.
FICO credit scores can be anywhere from 300 to 850. Subpar scores are between 580 and 669. Most people are unaware of their credit scores until they need to finance a car or some other high-ticket item.
Buying a Car with No Down Payment
You can purchase a car with no down payment. Here are some tips.
Higher Monthly Payments
A down payment cuts down on your monthly car payment by a large margin. Without one, your payments and interest rates will be higher. Remember this when you're tweaking your budget or determining how much you'll be spending on the vehicle you are buying each month.
Credit Score
You may already have a good credit score, typically 680 or higher. Strive to further enhance your credit score by paying your bills on time. You may even want to pay more than the required amount for a positive credit history. Do not apply for multiple credit cards, as this can have a negative effect on your credit score.
Loan Co-Signer
Get a co-signer for your loan so that you can obtain one and pay less for your vehicle. This might be beneficial, especially if you are a first-time car buyer or possess poor credit. Keep in mind, however, that if you fail to make your payments on the loan, the co-signer will be held accountable.
Shop Around for Lenders
There are various kinds of lenders who provide different interest rates and payment options. It is best that you research first and then approach the right lending agency. That way, you get the best rates and the right loan amount. You can then comfortably fulfill the down payment.
Saving Up
Make an assessment of your current scenario, whether you really need a car now or if you can postpone the purchase to a later date. By then, you should be able to save up for a substantial down payment. Get a dedicated account where you will deposit money regularly. A small part of your paycheck should be reserved for the down payment each month. Extra or outlandish expenses can be eliminated. Even if you have to wait a bit longer, make sure your down payment is saved so that you can reduce your payments.
Finance a Car at Motor City MINI
If you have a good credit score, you can buy a car without making a down payment at Motor City MINI. To know what's a good credit, go to a reliable MINI dealership near me that can help you assess your current situation and what's best to do when financing a car. For more information, schedule a financial consultation with our experts.
