You can still get a car loan even if you have no credit history. With a car loan, you can buy a car and build your credit history at the same time. Online car loan lenders make it easy to shop, and you can get better rates than at a bank.
Get Started
Look at your credit history before you start looking for a car loan. You have a credit history even if you've never opened a credit card account. Paying bills on time is just as good as having a checking account. Tip: If you don't already have one, open a checking account.
Plan to pay a deposit.
When you don't have any credit, financing companies treat you like you have bad credit. Plan on making a big down payment to make up for the risk of your loan. You can get away with putting down as little as 5%, but putting down 20% will get you better rates.
Look into businesses
Online lenders for car loans offer many different kinds of loans. Ask both traditional lenders and subprime lenders for price quotes. People with bad credit can get loans from subprime lenders. Most of the time, their rates are only a little bit higher than those of a traditional lender with few fees.
Evaluate Rates And Terms
Consider your financial goals when looking at rates and loan terms to find the best way to pay for your car. Even though low rates will save you money, you will usually have to pay more each month. Figure out how much you can spend each month, and then look for a package with the best price within that range.
Get Pre-approved
After choosing a lender, go ahead and get pre-approved. By filling out the forms online, you will save time and money because the fees will be less. Once you're approved, you can shop for a car like you have cash in hand. You can choose to buy from a car dealership or from a private person.
Consider Refinance.
Today, you can even refinance a car loan. If your loan rate isn't as good as you'd like, you can plan to refinance it in a couple of years. Use the time you still have to make regular car payments to build up your credit history. You'll be able to get credit cards to help build your credit score if your car loan is approved.
Go to http://www.abcloanguide.com/autoloans.shtml to see a list of online auto loan companies that we recommend.
