Q: I have no credit. How or does this interfere with me getting a loan for a car?
Deborah – Fort Pierce, FL
A: It is true that in some cases minor bad credit is better than no credit at all. However, in today’s finance environment, you are not at a disadvantage if you have a verifiable, stable and great paying job that will prove a low debt-to-income (DTI) ratio.
The next step is to come up with a good size down payment that will make the lenders feel that you will not be walking away from that good size initial investment. The third step is to buy a sensible vehicle that fits your budget and lifestyle. Co-buyers may also help the situation if they are close relatives and/or live in the same address (household).
An old saying may be true in this case – You may have to crawl before you walk, walk before you run, and run before you can fly! This vehicle should be a stepping stone to the ultimate dream car as your financial situation continually improves.
Agustin Vasquez Jr. – General Manager, Mack Massey Chrysler Jeep Dodge, El Paso, Texas