Every 18-year-old who has ever tried to get a loan for a new
car will tell you that it’s hard to get approved for a car loan
with no credit. It’s even more difficult if you are applying for
a used car loan because used car loans represent more of a risk
to a lender. However, getting approved for a used car loan with
no credit isn’t impossible. This article discusses three things
to keep in mind when shopping for a used car loan with no
credit:
Consider a Co-Signer
The best way to ensure that you’ll get approved for a used car
loan is to have someone with good credit co-sign on the loan.
The lender will list their name first, and that is the person
whose credit they will consider when they send the loan to a
loan officer to approve or decline it. However, you’ll want to
make sure that you pay your payments on time because your loan
goes onto both yours and your co-signer’s credit report.
Have a Parent Add Your Name to Their Credit Card
One of the quickest ways to get credit is to have your parent
add your name to their good-credit-reflecting credit cards.
This will automatically transfer all of their timely payments
to your credit report, therefore giving you good credit. If
that parent is not willing to co-sign for you, this may be the
next best alternative. This will allow you to appear as though
you have some established credit.
Borrow Less Than the Car Is Worth
When you don’t have any credit, lenders are going to want to
make sure that, even if you don’t pay your loan, they can
resale the car and get their money back. For this reason, it’s
important that you take out a loan for less than the car’s
appraised amount. For example, if the car you’re buying is
worth $10,000, you’ll want to borrow less than that amount.
Usually that means making a significant down payment. Making a
down payment makes you less of a risk to a borrower, therefore
improving your chances of being approved.
About The Author: Visit Car Loan Sense to view our
http://www.carloansense.com online. Also, visit Car Loan Sense
for help getting approved for a
http://www.carloansense.com/Dealer_Financing_for_a_Bad_Credit_Car_Loan.shtm
l.
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid#83179