No Credit History? Here is Some Tips on Getting an Auto Loan

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When people speak about getting an auto loan with bad credit, one thing that can be lost is what about people with no credit history? These individuals need cars too, so what are they to do when it comes time to buy but the credit history is lacking. Here are a few tips to help people who find themselves in that situation.

First, simply acknowledge that obtaining a car loan without a credit history is achievable but somewhat difficult. It will mean going the extra mile where someone else may not have to. Do not let yourself get discouraged.

Now that the pep talk is over, it’s time to do what needs to be done to get that auto loan. The first way to make life easier is to accumulate a larger down payment. The more money one can have to put towards the purchase of a vehicle, the easier the process is. It’s the best way to get the necessary loan as well as a better interest rate. Having a larger down payment tells the dealership that you are capable of producing the funding to pay back a loan.

If that is not an option, keep in mind that dealerships will go beyond a credit history when looking at applicants. The lender needs to know if the applicant is able to pay back the loan they are about to give. If they can’t get that information from a credit history, then they’ll look in other places. What needs to be brought in to help is documents such as a bank statement or recurring bills such as utility or phone bills. These show that you have monthly payment obligations that are being paid off. Another piece of information that can really help is proof of employment. Showing that you have steady work is an indicator of someone able to pay off a monthly loan.

Obtaining an auto loan without a credit history is tough, but it is achievable. Contact a sales person at Bayside Chrysler Jeep Dodge and find a time to come in so we can work with you to find the proper loan. We’ll get you driving away in the new or pre-owned vehicle best suited for your lifestyle. Be sure to like us on Facebook and to follow us on Twitter to see our monthly specials.

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