How to Buy a Car With Poor Credit & No Money Down

• 1). Get a copy of all three of your credit reports. There are some credit reporting services that are free. Choose one that does not ask you to give credit card information or sign up for a trial membership. There are three credit reporting agencies--TransUnion, Experian and Equifax. Look them over very carefully. Make sure all the information stated is yours. If there is an error, contact all three credit reporting agencies in writing with the proof that they have the wrong information. Keep copies of all communications.
  
  
• 2). Put a car budget together so you can see how much you can afford. List all of your current expenses and income. Scale back things if you need to. If you spend $5 a day on coffee every morning, make it at home. You can save around $100 a month by skipping the coffee shop stop. Quit smoking. A pack of cigarettes can cost $6. If you smoke a pack or two a day, that could be an entire car payment in a month. Make sure you can afford a car payment. It is vital that you can afford to pay your loan. Repaying any loan will improve your credit score.
  
  
• 3). A good place to start is with your bank. Make an appointment with a loan officer to see what your options are. Get it in writing and use this as a guide to compare other options. Look on the Internet, in newspapers, car dealer magazines, and your local car dealership.
  
  Consider finding a co-signer. If you know someone with a good credit rating, ask if he would consider co-signing for you. A co-signer is someone who will sign on the loan as a responsible party if you default on your loan. This can also help you get a better loan with poor credit.
  
  
• 4). Getting financing for a car loan with no down payment and poor credit is possible. Shop around and find the best deal for your personal situation. Use all the tools available to you. If you don't have Internet access at home, go to the library. The Internet is a great tool for finding the right loan no matter how poor your credit score.