In the wake of escalating work pressure, today it is very important to cut down on travelling time. Owning a personal car to a large extent solves this problem as you don’t have to spend hours in actually looking for a vehicle to reach your workplace. Buying a car is a comparatively more feasible proposition now than what it was earlier. It is because there are a number of car loan companies shelling out loans at attractive rates and terms. However as a borrower you cannot always be in ideal position where you might have been hit by bad credit scores in the past or for that matter your present financial situation might not allow you to make a good down payment thus forcing you to look for auto financing with no down payment.
However before looking for car loan with bad credit and no money down you must know the advantages of making good down payment and having good credit scores. A good down payment on a loan means that the amount of money you owe to your lender reduces, therefore reducing the interest rates as well. Your monthly installments as such are lowered as a result. Having good credit scores from past loans reflects that you have been a good borrower making timely repayments. In that case also when you look for loans the second time, your creditor refers to your previous credit scores and fix the rates accordingly. Needless to say, those rates become cheaper if you have the credit scores in your favor.
However getting auto loans with no money down becomes a risky proposition both for the borrower and lender. The creditors charge higher interests on zero down payments as they want to get as much money as possible at one go. Bad credit scores can make things worse as they are in any case not available at affordable rates since lenders are apprehensive of the borrowers’ repayment capacity. But as a borrower if you do considerable research on these loans on the internet you will be able to find creditors who shell out no down payment bad credit loans at cheaper rates as well.