Usually, people who have no credit at all are students or fresh graduates. Having no credit is similar to having bad credit for most auto car loan companies that’s why it is difficult to get a car through banks or car dealers. There are, however, many car loan companies that have special auto financing for people or students without credit. Here are the basics that you need to know.
- Shop online for a low limit loan
Many companies offer auto loan financing online. Look for the best company that can give you low interest rates and great terms, fitting your budget and paying capabilities. You can request free quotes from various loan companies to compare their rates. There will be more competition online so their offers could be low and reasonable. Buying a used car or a less expensive car, which is reliable, is a practical tip to keep in mind.
- Save up for down payment
Apart from preparing a huge bulk of the loan as down payment to lessen your interest rate, no credit auto loan companies are more likely to consider your application: the larger the down payment, the smaller the loan limits, thus easier to get the loan. Some companies accept trade-ins as down payment. Your car’s value will then determine the total loan limits.
- Provide proof of earnings
Proof of earnings can help companies assess your auto car loan. Supplying a strong proof of income can give companies confidence that you can repay the loan, thus get higher chances of being accepted. Some companies will require a guarantor or co-signer if you do not have any income. On the other hand, many companies will still accept you without a co-signer.
Stick with these tips and any student or anyone with no credit can get approved of a no credit car loan. Once you get accepted, make it a habit to pay your loan regularly. You can even use it as a platform to build good credit in time.