Bad Credit Financing
Can a person get 0% car financing if they have bad credit but put down a big downpayment?
I want to pay cash for a used car (15,000)…I have the $$, but I want to build more credit, and want a car loan so I can pay it off in just a couple payments.
That’s a loaded question. You can, on paper, show 0% interest, when you’re just paying the interest off out of the total profit from the car. Every major finance company I know of offering 0% insists that the buyer qualify for a certain tier level to get the rate, and with poor credit, you probably won’t qualify. So the basic answer is this… a snake can show you 0% and you’d never know you just paid the 20% rate out of your big downpayment.
In addition, paying it off in less than a year really won’t help your credit score that much. However, a cd for part of that $15,000 might earn you enough to offset some of your higher interest rate.