HOW TO GET A CAR LOAN WITH NO CREDIT
FOUR FACTORS TO CONSIDER WHEN GETTING A CAR LOAN WITH NO CREDIT
If you have no credit, you know that getting a car loan can be a challenging process. Luckily, there are lenders that understand your situation and are willing to help. You can get a car loan with no credit, and use it to help build your credit. Before applying, consider these four factors, which could improve your odds of approval.
STEADY INCOME
Regardless of whether your loan considers your credit score, your lender may want to see proof of income. This could be a pay stub, a letter, or a bank statement. A steady income assures lenders that you can make payments for an extended period. If you have a reliable income source, you can pay off your car loan.
DOWN PAYMENTS
A down payment is a payment made upfront. It shows lenders that you are invested in your purchase. While some lenders do not require any money down, providing a down payment helps show that you are fiscally responsible. As a bonus, a down payment may lower your monthly payments or interest rates. Showing your lender that you are financially capable and invested in your purchase may increase your chances of approval.
COSIGNERS
A cosigner is a person who agrees to pay for your loan should you be unable. If you fear that your credit may prevent you from receiving a loan, ask a trusted a friend or family member to cosign. Even if you believe you can make payments on time, a cosigner may provide extra assurance to lenders.
CURIOSITY
Curiosity, in this case, can save "the cat's" bank account. Before applying for your loan, don't be afraid to call and ask questions in advance. Great questions to ask can be about interest rates, loan lengths and delinquency practices. Make a list of everything that concerns you and ask questions ahead of time. Be proactive as you seek financing for your next vehicle. These four factors could get you behind the wheel more easily than you expected.