0 Percent Auto Financing - How to Qualify For A Cars with Zero Percent Financing

A good credit score and a little money to make a down payment is very important and can help in the long run but it is not something that all of us can enjoy. With rising expenses and a limited source of income many of us find ourselves in a difficult situation. However banks and finance companies seem to understand this and that is why they offer 0 percent auto financing.

The interest charged on such loans is on the higher side but with many finance companies joining the bandwagon competition has increased in the market and hence why the interest rates are going down. However, before you decide to opt for a zero percent loan for your car you will need to understand how it actually works.

To be a candidate for car loan no down payment you need to have a lot of patience and a good knowledge of how the system works. The tips given below may help you in securing an auto loan.

1. Find out what your credit score is. A score above 680 is ideal to secure a loan, any score which is between 550 and 679 is sub-prime, which means that you will pay high interest on your loan and any score below 550 will make your situation worse.

2. Do not keep shifting home, your address should stay the same for at least one year.

3. Do not change jobs. You will have to prove to the lender that you have

a steady source of income that will help you replay the loan as well as the interest.

4. Change your shopping habits, this will help you improve your credit score and will prove to the lender that you are serious about repayments.

5. Pay of any tickets that you may have unpaid on your driving record. The lender will ask for this and so you need to work on it immediately you think of a loan, as banks and finance companies will not lend money to risky drivers.

6. Do your homework and find out what interest rates lenders are charging for cars with 0 financing.

7. Every car receives different rates and so before you actually buy the car you need to find out the rates and try to negotiate with the bank to lower the rate.

8. A new car is not for you and so you must select a pre owned car is you want to pay less interest.

9. Ask a friend or family member to consign on the loan for you. The lender will need to run a background check on the consignee as well so you must choose someone who has a better credit score than yourself.

Car dealers also give no credit no down payment cars at reasonable rates but they too will need all the documentation that banks and lenders need. The cars they sell are usually pre-owned making them cheap as well to finance yourself.