My Own Way

When you have a bad credit score, people tell you to put in a large sum of money as a down payment. They say it provides a better chance of loan approval. Experts recommend paying 10% of the total car value as a down payment. Is this true? FACT: Larger the Down Payment, the Smaller the Lender’s Risk People with bad credit scores hold a risk for lenders as they have a history of missing out on monthly payments. The amount of risk impacts the auto loan approval. If you pay a sizeable down payment, your loan amount will reduce. Also, paying a large sum of money reduces the psychological risk of the lender as it proves that you will pay your loan on time. It will also positively affect your impression in front of the lender. Thus, it can improve your chances of getting a bad credit auto loan . FACT: You can save money by making a Down Payment Making a significant down payment helps you save money in the long run. It reduces the total loan amount and interest payable to the lender. Finall