How To Finance Your First Car With No Credit

No matter what your reason for not having credit you re far from alone.

How to finance your first car with no credit. Open a credit account. On the bright side getting that car loan and making all. Check your credit score. For example a secured credit card is useful because it doesn t require a credit history to apply for. With their name on your car loan they re equally responsible for payments if you don t pay on time.

Bring documentation of this credit card to lenders when applying for a car loan. Consider a cosigner while it s sometimes possible to buy a car without a cosigner most lenders will require you get one to qualify if this is your first car loan. With all of the homework above done you should find someone willing to work with you. They specialize in providing auto financing for people with unusual circumstances. However if you have a guarantor to vouch for you in many cases get car finance here will still be able to help you finance your dream car.

Shop around for a loan. Once you have saved enough for a down payment you are ready to start your car purchasing journey. Compare auto financing offers. It is to your advantage to have a pre approved loan in hand before you visit a car dealer. Find a cosigner with good credit.

Use a guarantor to cosign. If you don t have any past credit history such as a mobile phone contract it may be more difficult to be accepted for car finance. Compare rates and go with the best deal. Next save up for a down payment which is usually 10 20 of the car s total cost. Another way to improve your odds of getting a loan with no credit history is to shop at smaller car lots and independent lenders.

One of the first steps before applying for any loan is to check your score and make sure any details that on your credit history report are correct. Check with your credit union your bank and online lenders to see if they offer a first time car buyer program. Experian one of the three major credit reporting agencies estimates as many as 45 million americans have no credit or thin credit files. Having a cosigner makes it easier for you to get approved while having someone with good credit on the loan may even qualify you for a better. Opening a credit account as soon as you decide you want to take out a car loan will help your credit score if you have no history.