No Credit Car Loans - Getting A Car Loan With No Credit

Because many auto loan lenders are willing to assist individuals with all credit situations, it is possible to obtain a new or used car loan with no credit history. In some instances, those with no credit history are lumped together with bad credit applicants. However, there is a huge difference. Here are a few tips to help you get approved with no previous credit history

Open a Checking or Savings Account:-When applying for an auto loan, lenders want to see evidence that an applicant is responsible. In most cases, a credit report is sufficient. However, if an applicant has no previous credit, they may be willing to consider other factors. For example, does the applicant have an active checking or savings account? If so, maintaining a good account standing with the bank may serve to your advantage.Moreover, having a utility bill in your name also helps. This way, potential auto loan lenders are able to observe your willingness to pay bills on time.

Maintain Regular Employment:-Along with reviewing past credit history, auto loan lenders also consider an applicant's income and work history. Individuals who have developed a habit of jumping from job-to-job are decreasing their approval odds. Lenders desire stable applicants. Additionally, applicants must earn a reasonable salary. For example, if your salary after taxes is only $800, most lenders will not approve a loan which involves a $500 monthly payment.