How To Finance Your First Car With No Credit

Then provide a copy of your bank statement proof of employment history and any paid bills such as your phone or utilities in order to obtain a loan through your bank.

How to finance your first car with no credit. Bring documentation of this credit card to lenders when applying for a car loan. Open a credit account. Have no credit or so little credit that they don t have a credit score says matt joiner automotive product manager for experian one of the three main u s. Compare rates and go with the best deal. One of the first steps before applying for any loan is to check your score and make sure any details that on your credit history report are correct.

It is to your advantage to have a pre approved loan in hand before you visit a car dealer. Check with your credit union your bank and online lenders to see if they offer a first time car buyer program. Check your credit score. Shop around for a loan. Up to 100 million people in the u s.

Consider a cosigner while it s sometimes possible to buy a car without a cosigner most lenders will require you get one to qualify if this is your first car loan. If you don t have any past credit history such as a mobile phone contract it may be more difficult to be accepted for car finance. With all of the homework above done you should find someone willing to work with you. They specialize in providing auto financing for people with unusual circumstances. Compare auto financing offers.

You want at least 10 of the purchase price but with no credit rating try to save 20. Once you have saved enough for a down payment you are ready to start your car purchasing journey. Next save up for a down payment which is usually 10 20 of the car s total cost. Use a guarantor to cosign. If for instance you ve been an authorized user on a credit card in the past this will appear on your credit reports and after checking you may find you have a credit score.

Having a cosigner makes it easier for you to get approved while having someone with good credit on the loan may even qualify you for a better. Another way to improve your odds of getting a loan with no credit history is to shop at smaller car lots and independent lenders. No matter what your reason for not having credit you re far from alone. Find a cosigner with good credit. Experian one of the three major credit reporting agencies estimates as many as 45 million americans have no credit or thin credit files.