How To Finance Your First Car With No Credit

Check with your credit union your bank and online lenders to see if they offer a first time car buyer program.

How to finance your first car with no credit. To get a car loan if you have no credit start by opening a bank account. For example a secured credit card is useful because it doesn t require a credit history to apply for. 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. Check your credit score. Have no credit or so little credit that they don t have a credit score says matt joiner automotive product manager for experian one of the three main u s.

If for instance you ve been an authorized user on a credit card in the past this will appear on your credit reports and after checking you may find you have a credit score. Next save up for a down payment which is usually 10 20 of the car s total cost. Compare rates and go with the best deal. 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. You want at least 10 of the purchase price but with no credit rating try to save 20.

Use a guarantor to cosign. No matter what your reason for not having credit you re far from alone. It is to your advantage to have a pre approved loan in hand before you visit a car dealer. Shop around for a loan. 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.

Experian one of the three major credit reporting agencies estimates as many as 45 million americans have no credit or thin credit files. Bring documentation of this credit card to lenders when applying for a car loan. 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. Compare auto financing offers. On the bright side getting that car loan and making all.

To get a car loan without any credit you ll need to do a lot of work to prove you re a financial risk worth taking. Another way to improve your odds of getting a loan with no credit history is to shop at smaller car lots and independent lenders. With their name on your car loan they re equally responsible for payments if you don t pay on time. Once you have saved enough for a down payment you are ready to start your car purchasing journey. They specialize in providing auto financing for people with unusual circumstances.