Many borrowers might wonder, “How can I buy a new car with no credit?” Well, they need to be rest assured since these days there could be lenders that specialize in providing auto loan finances to even those applicants who have zero credit ratings to start with. However, to improve chances of qualification some basic requirements will have to be met.
Madison, WI -- (SBWIRE) -- 10/08/2012 -- It’s true that in America individuals need cars for transportation but, “Can you buy a new car with no credit?” Well, not many people could answer this question as a majority of them could be unaware whether banks or credit unions offer such loans. Until recent past, borrowers who had zero credit ratings found it tough to qualify for auto loans financing brand new cars but things have changed for now. These days there could be lenders that specialize in providing car loans to even those applicants who have no credit history to start with. Therefore, it could be possible to obtain an auto finance loan despite being a college student with bad or no credit history. Dealerships, which offer such specialized bad or no credit car finance programs, have perfect understanding of the financial situations that are being faced by borrowers who have poor credit.
Nevertheless, for those who may think, “Car Loan with No Credit History?” it could be vital to know that the interest rates being charged by loan dealers could be much higher than they may have ever thought. Although it could be possible to get the rates of interests reduced, lenders will have certain conditions for approving no credit auto loan applications. To that effect, most of the loans dealers will want applicants to be U.S. residents who are above the age of 18 years and have at least a part-time employment with a minimum monthly income of $1,500. There could be more such guidelines which most of the applicants could be needed to fulfill. Borrowers who are considering applying for auto loans with no credit histories need to have a fair idea of all such qualification requirements before they proceed to apply for a car loan.
Car Loan with No Credit History Helps First Time Buyers
Besides, should someone feel, “Can you buy a car with no credit history?” he or she needs to save some money for paying a down payment if rate of interest is to be reduced. A majority of the lenders will expect applicants to pay 10 or 20% down payment if they want low interest rates. Alternatively, one may also consider getting a cosigner who has a good credit reputation to cosign the loan which is being provided. Such propositions help lenders to reduce the lending risks faced by them borrowers with zero credit thereby have the chance of qualifying for competitive auto loan rates. However, for finding the lowest possible interest rates, it could be important for an applicant to get numerous free non-binding quotes from several different loan dealers and compare them with the help of an online auto loan calculator or some comparison website.
LoansStore has helped tens of thousands borrowers to qualify for the best bad credit car loan rates online. The company has been in car loan services for well over past seven years and has carved out a niche for itself in the market.