No credit car loans have been developed for those who are new to the credit market
and have not had the time or transactions needed to build up a credit history. This doesnt mean that the person has good credit or bad credit. It just means that at this point in time they dont have a credit history. The interest rates on a car loan with no credit arent the best rates in the market. You probably expected that. However, they also arent the worst rates that are out there. As a matter of fact, many would consider them competitive to good rates.
If you feel like you will have very good or excellent credit when you credit record gets established, one thing you can do to facilitate you auto purchase is to go ahead and get a car loan with no credit. If you find you get a credit rating during the life of the car, you can refinance. If you just arent sure how you credit history is going to work out, theres a good chance that getting one of the no credit car loans will be a good rate for you and you wont look back with any regret.
In either situation is good to know that an auto loan has been developed that serves this time in your credit life where you just dont have enough history to move forward with a traditional loan. Its also important to not confuse the car loan with no credit with a no credit check car loan. They arent the same thing. A no credit check car loan is generally for those with bad credit and often carries a very high interest rate and also onerous terms and conditions. This is a loan you want to stay away from if you can.On the other hand no credit car finance assumes a much better credit situation.