Car Loans With No Credit History – How To Lock A Good Rate?
If you don’t have a credit history established, you realize it can be frustrating to receive credit. Oftentimes banks may not approve you for a credit card without a cosigner or collateral. However, the good news is you may be a good candidate for car loans with no credit.
Finance companies understand you need a vehicle for work and are willing to work with you. To receive car loans with no credit here are some tips to help you with the process.
The first is to budget for your new vehicle. This will make shopping easier as you know what you can afford each month. Along with this, you’ll want to find affordable car insurance.
Next, you will want to shop for car loans with no credit. You can stop by a dealership, go to your local bank or credit union or try to get online car loans. Regardless of how you go about it here are some steps to make you a better candidate.
Since finance companies won’t have a credit history to go on, your employment will become that much more important. By showing stability in your employment history it will go a long way in projecting yourself as responsible to the lender. Additionally, your income weighs heavily into the equation as they want to see if you can make your payments.
Another thing you’ll want to do is make a downpayment. The rule of thumb is to put 20% down, as this can lower your payments and could reduce your interest rate. If you don’t have that much, try 10%. The reason for this is by putting money down the finance company may not view you as much of a risk and this could make you a better candidate for the best car loan rates.
Lastly, the best place to start for financing is your local credit union. They have lower rates than banks. They are also a great place for those looking for car loans for college students as they can offer more affordable terms.
By following these steps, it can help you know what to expect during the process. It will also inform you of what lenders are looking for that way you are a better candidate. Ultimately, even if you don’t have a credit history there’s no need to worry as you can still get car loans with no credit.