Have Bad Credit? Interview With Crystal Stemberger of Budgeting In The Fun Stuff

Can you buy a used car with no down payment?

I’m sure you can but haven’t looked into this myself. I assume great credit can get you any car without a down payment. Or if you have bad credit, I’m sure they are willing to help you out with a low or no down payment.

If a down payment is needed, how much of a down payment should the customer provide?

This is a personal choice. If the loan is for 2% or less, I won’t put any money down. I bought my new 2013 Honda Fit with no down payment since the interest rate was 0.9%. I won’t pay it off early either. When I bought my new Chevy Aveo in 2005 for $11,000 at a 6% rate, I put down $1000 and paid off the car in 2 years.

Is it possible to purchase a used car with a minimal down payment and also have bad credit?

Probably but your interest rate will most likely suck. 🙂

If you’re divorced and as a result of that divorce have bad credit, what tips would you offer the customer on how to obtain a loan?

It depends on the loan. No matter what, go through the process of trying to improve your credit by paying off debt, paying your bills on time, and apply for small loans you know you can get approved for and pay off on time, every time.

If a customer has just declared bankruptcy and they want to buy a vehicle, what do you suggest they do?

Save up cash, work an extra hobby job or sell some stuff, and buy a dependable used car for cash.

Should a customer bring any documentation with them before they walk into the car dealership?

They will need their driver’s license and insurance cards, but I wouldn’t walk into a dealership unless a deal was worked out in advance, and they’ll let you know what to bring.

How long does the credit restoration process take?

If you can get false information removed, it can be a matter of months. If you are battling back from bankruptcy, it can take up to 7 years, right?

Should a customer run there credit score prior to walking into the dealership?

I see my general credit score for free with Discover every month. But yes, if you don’t know your score, I would highly suggest checking it for free (like really free) at places like CreditKarma.com

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