How To Get A Car Loan With No Credit

When you want to finance a car but don't have any credit, you should find out how to get a car loan with no credit. Some car dealers offer first-time buyer programs for people with no credit. You can also search online for websites that have a similar program. A first-time buyer loan may carry a higher interest rate than what a borrower with established credit could get. You may want to consider asking a relative to co-sign the car loan. Your interest rate should be lower if the co-signer has good credit. To get a car loan with no credit you may need a sizeable down payment, so be prepared to part with some cash if the lender requires some money down to approve your loan.

Things you'll need:

• Credit application
• Co-signer
• Internet access

1. Once you settle on a purchase price for the car, ask the dealer about financing. Explain you have to get a car loan with no credit and find out if the dealer works with a lender that has a first-time buyer program. Complete a credit application with the dealer and submit it for approval. If the dealer does not have a lender that offers first-time buyer loans or if the lender only approves you with a high interest rate, try to find a co-signer.
2. Contact your co-signer and have him/her come to the dealership. Tell the co-signer you need a car loan with no credit and see if they will help you out. The dealer will have your co-signer fill out a loan application. The lender will check your co-signer's credit and verify their employment. If the loan is approved, you should be good to go.
3. You can also search online for first-time buyer lenders. If you do not want to use a co-signer or if one is not available, check the internet for a car loan with no credit lending source before you agree to a loan offered by the dealer. Complete an online application and see if you are approved.
4. Compare the loans and choose the one with the best rate. If you are approved by an online lender for a car loan with no credit, review the loan terms. If the monthly payment is acceptable, take the deal if the online lender is one that you trust. You can always pay extra each month to help offset a higher rate of interest by reducing the total amount of the finance charges.