When you want a car really bad, the first thing that comes to mind is getting a car loan. The problem is that not all auto lenders approve loans easily if you are an applicant with no credit history. So what can you do about it? You can borrow some money from friends or empty up your bank savings for the car. Or not buy the car at all. Really hard to give up a lot for a car, or just give up the car, right?
Securing a car loan with no credit history is still possible. How? Get online. If you arrange an auto financing online, it will be easier for you to find the car that you want upon approval. Just be warned though. For people who have never obtained a loan or a credit card, obtaining an auto loan will require a lot of learning. So you still have to be alert in everything you do online especially when auto loan lenders will require you a down payment. There are also auto lenders who do not require a down payment. But either way, research more on loans, credit management and online financing.
Don`t think that when you are not required of a down payment that you are already qualified for a loan. Sometimes, there are auto loan lenders that will give you something to sign just to get your application approved. Then later on, you will be charged with higher fees but no car. Beware of scams like this. Be sure to read around review sites and check the names of your potential auto loan lender. If possible, get a loan from those whose name is already established. Shopping around for car loan lenders is time consuming but if you put your heart on it, you will be getting the best car loan and the best time to get a new car.
In shopping for loans, take the details that are very crucial. Interest rates, requirements, and the legitimacy; these are the three basic things you need to verify. Do not wonder why you are charged with a higher rate than the regular auto loan. Remember that having no credit history means you are still flagged as high risk consumers by lenders. So by now, you are still classified with the bad credit history borrowers. But don't worry, just think of this as your opportunity to create the foundation of your credit history.
Car loan is still a big responsibility. Pay your loan principals and interest on time to get your credit history work good. Credit history is very important since it determines your credit score. Credit scores are one of the common basis for future loan and credit card approvals. Though you don`t want a long term credit or this car loan is your first and last credit, don`t make it a reason for you not to pay the loan on time. It is still a part of your credit history which may be used for other reasons not related to credit. Remember that even insurance companies and employers use credit history for their decision basis.