If you are looking to buy a car, then it’s much better to do so with no credit auto loans. A loan such as this is beneficial to new college graduates and those who prefer to transact with straight cash payments. Since you have not established a credit history or applied for any loan through a credit facility, you may be given the chance to own the car of your choice. If this is the loan that you are considering, then it’s important that you do the following.
Opening a savings account is one way to get a lender to take notice of you. Since this creates the impression that you are a responsible individual who believes in putting something away for a rainy day, it will be much easier for them to collect whatever money you will owe them should you default on making future payments.
On the other hand, it’s much harder to get car loans for people with bad credit. The problem with individuals who fall in this category is that they make late payments, exceed their credit limits, and have declared themselves bankrupt at one point or another. This makes it harder for lending facilities to trust them, which results in them having much lower credit score. In order to avoid this, make sure the credit card you apply for sets a low credit limit. Also, pay your monthly bill on time to make sure your account remains in good standing.
However, there are times when a used car auto loan will be the only choice presented to you. Bad financial decisions will have caused you to bite off more than you can chew which leaves you with this as your only resort. While it may seem unappealing at first, it’s not as bleak as it seems. There are a lot of great used cars that are in excellent running condition. You can find a relatively new model car that’s been pegged as used quite often. Surprisingly, three or four year old models can be still found in good shape as car manufacturers are doing all they can today to improve on durability.
Thinking about buying your first car but have no credit to speak of? Then no credit auto loans are your ticket to getting there. It’s best that you establish your credit as much as you can by opening a savings account and paying your bills on time as best you can. For people living with bad credit, then a used car auto loan can be a much cheaper and affordable alternative.