Getting a car loan with the present economy can be pretty tough. After all, banks are struggling across the board just to stay afloat. The phenomenon is occurring around the world, so don’t worry if you and your family are feeling strapped for cash – you’re not alone.
If you have no credit, don’t worry, there are still ways that you can get your car loan. Here are three ways that may help you:
Start Building Credit
The first thing you need to do for all future loan requests is to start building your credit now. Building your credit means that you are developing a credit history that banks and other lenders will be able to look at to determine whether or not you are a safe risk. In order to build your credit, one simple thing you can do is to take out a credit card. The credit card will show a record of your payments – so make sure that you pay it off on time!
With or without a long credit history, you can still research lenders. If you are able to wait until you have at least somewhat of a credit history (from your credit card or other loans), then you may be able to find a lender that will not only give you a loan, but that will also give you a big enough loan to buy a car at a low enough rate to actually afford it! Look around and compare what lenders are willing to give you with what you will need to buy the car.
Pay it Off
The next and last step towards getting a car with no credit is to actually pay the loan off. By paying off the loan, you will not only be fulfilling your commitment to the lender, but you will also be proving that you are capable of getting a loan and paying for the loan. Any future lenders (such as a mortgage lender) will see that you have a history of paying off your loans and they will be more inclined to work with you.
Getting a car loan with no credit is possible – no matter how long you have been without a credit history. Remember: in order to get a loan, you should have a credit history. While it may be natural to want to avoid debt, the credit history will help lenders to feel comfortable with lending you money as long as they can see that you have actually made huge efforts to pay those loans off.