How to Deal With No Credit Auto Loans
Occasionally, having no credit history can be just as bad as you having a poor credit history
. Before giving you auto financing with no credit, financial lenders need to gauge an applicant's credit worth. If you have no previous creditors, a potential financial lender may consider you a high risk and either deny a credit application or offer a high car loan interest rate. This applies to a lot of loans. Fortunately, there are many options available to those hoping to obtain a car loan with no credit history.The easiest way to get a no credit car loan is simply for you to establish some credit before applying. In some instances, financial lenders will prefer applicants who have previously financed a vehicle. If you repaid a previous bad credit auto financing, or maintained regular payments, financial lenders consider this a good sign. As a result, you may be able to qualify for a low car loan interest rate.
If you have a really good credit rating, you may be able to qualify for super low car loan interest rates. Establishing a good credit history is not all that difficult to accomplish. Within six months of you opening a new account and making regular payments on time, your credit score will go up fairly quick.
An additional approach involves obtaining a car loans with no credit with a co signer. If you happen to be married, your spouse may act as a co signer for you. Additionally, young adults trying to get an auto financing with no credit may have a parent co-sign for the loan. To qualify for low car loan interest rates, the co-debtor must have good credit.
How to Deal With No Credit Auto Loans
By: Shelin Michel