back to articles | December 31, 2018 | Dale Peterson
Categories:   Types of Car Loans
Car Loans with No Credit
Apply for a Car Loan With No Credit
Have you ever been turned down at a car dealership for a car loan? Have you been denied credit at your own bank? In previous times, having no credit meant having a difficult time securing the financing you need to purchase a car. But, the days of rejections are on their way out and you will be amazed to find out how easily you can be approved for a car loan with little or no credit.
No Credit History
If you have never used credit for purchases, financing your first car can be a very frustrating experience. However, with the right documentation, obtaining financing for your car may be easier than you think. You can get a car loan with no credit from most financing companies by providing proof of employment and proof of residence of not less than six months.
What you will need to apply for a no credit car loan
While all loans require documentation, securing financing for a car with no credit may require additional documentation. The following is a list of documents a lender may require if you have no credit:
- Most recent pay stub
- Utility bill in your name
- Driver-s license or other state issued identification
- Any additional documentation supporting other income such as child support or alimony.
"No Credit" Plan of Action
When the situation for applying for credit arises, the best advice is to have a plan of action. The best place to start is by making a budget. Be sensible and thorough. The next step is to choose 4 - 5 cars that interest you. Use the online calculators available to determine how much you can afford to finance. After you identify the automobile you desire visit different online insurance companies to determine the approximate cost of insurance. When you feel comfortable with the numbers, fill out an online application for financing. You will probably be surprised on how easy it can be.