By Hilary M Bowman

When applying for most auto loans, those with bad credit are usually asked to come up with a sizeable down payment to secure the car loan they need. There are ways to get an bad credit auto loan without a down payment. Thousands have done so, and you can be next by following a few tips from financial advisors.

Know Where Your Credit Really Stands

An important thing for bad credit borrowers to consider before applying for any type of loan is to check their credit before making an application. Oftentimes, erroneous information could be contained on your credit report that could be making your credit score look worse than it actually is. There are three major credit reporting bureaus – Experian, Equifax, and Trans Union. Check your report with all three and immediately dispute any accounts that are being falsely reported on your account. The credit bureau has thirty days to make a decision about the legitimacy of any disputed item, or they must delete the item.

Your Choice Of Loans

With that being done, you should consider your bad credit auto loan options. There are two types of bad credit auto loans that you can get without money down – the secured and unsecured bad credit auto loan.

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The secured bad credit auto loan is the easiest of the two for you to get with a bad credit score. You will pledge security or collateral to secure the loan – usually by allowing a lien to be placed on an item of value. The lender will release the lien once you have repaid them in full. The secured bad credit auto loan also costs less interest than the unsecured, and gives you a longer amount of time to repay the lender, which will make your payments smaller.

The unsecured bad credit auto loan, though harder to get, is also a great option for borrowers with tarnished credit. The unsecured loan will generally require that you have a creditworthy cosigner who is willing to repay the lender if you default on your bad credit car loan. A cosigner can be your parents, friend, relative – anyone who wants to help you finance your car. There are lenders who offer to release your cosigner from liability of repayment after you have proven yourself by making the first year of payments on time without incident.

Why You Can Save Online

You can increase your chances of getting approved for the bad credit auto loan that you need now without any money down by visiting the websites of online lenders. The reason that online lenders do more business than traditional lenders is obvious – they have more expendable capital to loan and therefore are willing to take larger risks than traditional lenders like banks and credit unions in your local town. Further, these lenders face multitudes of competition between other lenders of their kind online, so they are always eager for new borrowers – just like you!

About the Author: Hilary Bowman is the author of this article. She works successfully as a financial advisor with years of expertise on

Unsecured Loans

. Hilary publishes informative articles about

loans for bad credit

, no credit check loans, personal loans, student loans and other financial topics at


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