New Auto Loan Financing for Buyers Without Credit History

Looking for a new auto loan? Just starting out on your own and you have no credit? There are auto loan options available for you. With a little homework, and planning, you can find the new auto loan that is right for you.

Important Things to Remember in Preparation for Your New Auto Loan:

Make sure all of your financial information is accurate and organized.

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      Check and re-check your credit report. All three of them. There are three credit agencies that report information on your report.  Make sure your information is listed correctly with all three agencies.  Make sure they are accurately reporting your credit history and take care of any issues you may find promptly. This is vital and will help determine your interest rate and what type of loan you qualify for because most lenders rate your loan by using your credit.
       
    * Do some research on the web to find the financial institution that has the best new auto loan rates and terms.
       
    * Have an accurate representation of your household income, assets and liabilities.

Planning For Your New Auto Loan

Get a copy of all three of your credit reports. Make sure there is nothing on them that shouldn't be there. However, if there is, faulty information, contact all of the credit reporting agencies in writing and provide them with supplmental documentation to prove they have the erroneously reported information. Keep copies of all communications.

It is very important to plan for your new auto loan. If you don't have a bank account, get one. Even if it's only a savings account. Once you have that bank account, start building a relationship with your loan officer. Ask questions. Find out everything you can about the types of new auto loans are available, and which ones you qualify for. Also, find out what you need to do to qualify for better loans so that you can plan your next course of action.

Get a budget together so you can see how much car you can afford. You might even start putting that amount in the bank account you just opened. Use this for a down payment. The more money you can put down, the better. You can get a much better interest rate and terms with a good down payment.

Your Bank, An Individual, Or A Car Dealership?

Do some research. Look on the Internet, in newspapers, at car dealer magazines, and even ask that nice loan officer at your bank. If you know someone with a good credit rating, ask them if they would consider co-signing for you. This can also help you get a better new auto loan. Find out what your bank can currently offer you. Get the banks best offer in writing. Take it with you on your search. This will give something to base other offers on. The dealership may even give you a better deal than the bank.

New Auto Loan, No Credit!

A new auto loan with little or no credit is possible. With careful planning and shopping around, the best deal for you is out there. Do some leg work and find your best deal. Try to save for a nice down payment. There are loans options out there that you can get.


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