Today’s Economy is Making it Hard to Get a Loan – Even If You Have Good Credit
If you have little or no credit, you may be wondering if you will be able to get a car loan. If you are able to get a car loan, what will the rate be and how much will you have to pay? Will it be hard to get a car loan with no credit?
The bad news is that lenders see having no credit almost the same way they see having bad credit. For qualifying purposes, your credit score can be low or lower than if you had bad credit. It can make it very hard to get a car loan and you may wind up paying a higher interest rate.
The good news is that there are lenders who specialize in no credit car loans. They can suggest special financing offers for people who don’t have any credit history and often suggest fair rates and payments. Often, people think that the best way to get a car loan if they have bad credit is to have a co-signer, but this is not always the case. Many lenders now suggest car loans to people with bad credit without the help of someone else’s credit history.
These no credit car loans are fine because it helps people to build their credit and anyone who has no credit knows how hard it is to get credit in the very first place. It hardly seems fair, but that’s just the way it is.
There are some things you need to know, however, before you begin your search for a car loan.
- Check your credit report before you apply for a loan. Sometimes, even if you have no credit, there can be errors on your credit report that cause you to pay higher interest rates and make it stiffer to get a car loan. Make sure this is not the case by knowing exactly what is on your credit.
- Be ready to provide proof of income. You’re going to want to have at least two pay check stubs and two years of yearly tax statements if you’re self employed.
- You should have a checking account and be able to provide statements for at least two months.
- Make sure you have a valid driver’s license or identification.
- Be ready to suggest up to five private references. These can be friends, as the lender is looking for a way to get a hold of you if you have not made your payments and are not answering your phone or returning the lender’s calls.
- Have a good down payment saved up. It used to be that a good down payment was about $1,000. Now, you are going to want to have at least 20% of the cost of your vehicle. That can be a sizable chunk of switch, so it’s a good idea to plan ahead when preparing to buy a vehicle.
It may be daunting attempting to get a car loan if you have no credit, but there are tons of options available, so make sure you explore all of them.
A quick and effortless way to get numerous, low interest car loan quotes is by requesting free quotes from Car Loan Warehouse. The Car Loan Warehouse has helped thousands of people find affordable car loan rates. Whether you have excellent credit, no credit or bad credit, you can still get approved in minutes. Get your 100% free, no-obligation car loan quotes today!