People looking for auto loans, with little or not credit, might think it will be hard to secure one. This is because most lenders consider those who have no credit history first time buyers who are a bit of a risk. There are a few tips that can help give you an edge when it comes to securing a loan.
One of the simplest things to do is have someone with established good credit be a co signer on the loan. The lender will use the co signers credit history to determine if they are worth the risk. Using a co signer will help you to establish credit of your own.
When a lending institution uses the co signers information, you will most likely get a loan. However, it is very important to make all loan payments on time to keep yours and your co signers credit in good standing, and prevent repossession of the car.
Another way you can increase your chances of securing a loan is to save for a large down payment. A substantial deposit will make you less of a risk for the lender. Having at least twenty five to thirty percent for a deposit will be impressive.
A large down payment will reduce the total amount of the loan. If the car is repossessed due to non payment, the bank will be able to resell it and will not lose a lot of money. Defaulting on a loan will harm your credit rating and that of the co signer.
Individuals who have no credit and searching for auto loans may get help from dealerships offering first time buyer assistance. When you apply for a new loan make sure to have a co signer or a twenty five to thirty percent down payment to help you. Be sure to make all payments on time to help you build your credit and to protect your co signers credit.
One of the simplest things to do is have someone with established good credit be a co signer on the loan. The lender will use the co signers credit history to determine if they are worth the risk. Using a co signer will help you to establish credit of your own.
When a lending institution uses the co signers information, you will most likely get a loan. However, it is very important to make all loan payments on time to keep yours and your co signers credit in good standing, and prevent repossession of the car.
Another way you can increase your chances of securing a loan is to save for a large down payment. A substantial deposit will make you less of a risk for the lender. Having at least twenty five to thirty percent for a deposit will be impressive.
A large down payment will reduce the total amount of the loan. If the car is repossessed due to non payment, the bank will be able to resell it and will not lose a lot of money. Defaulting on a loan will harm your credit rating and that of the co signer.
Individuals who have no credit and searching for auto loans may get help from dealerships offering first time buyer assistance. When you apply for a new loan make sure to have a co signer or a twenty five to thirty percent down payment to help you. Be sure to make all payments on time to help you build your credit and to protect your co signers credit.
About the Author:
If you are in the market for a used car, make sure you check HertzCarSales's great used car search inventory, and you will find great rental cars for sale.
0 comments:
Post a Comment