Buying a vehicle can be challenging if you don’t have any credit. Here are a few tips to help you obtain an auto loan.
Set Up A Budget
Examine your finances and take inventory of how much money you have in your checkings and savings account. Calculate the monthly payment you can afford for a vehicle payment, insurance and maintenance after paying off existing bills. It may be easier to get approved for a car loan if you’re able to put down a 20% down payment.
Establish Credit Beforehand
If you’re planning on purchasing a vehicle in the next few years you may want to start establishing credit right now. This will enable you to build a history and increase your credit score. Secured credit cards and store cards are generally easier to get approved for if you don’t have any credit.
Increase Your Chances Of Getting Approved
In addition to an established credit history, lenders generally like to see a steady employment history and salary proportionate to your monthly expenditures. Some may also consider the duration of time you’ve lived at a residence.
Consider Getting A Co-Signer
If you’re having difficulty getting approved for an auto loan you may want to consider asking someone to co-sign for you. This individual agrees to take on responsibility for the loan in case you default.
Are you interested in buying a car near Dallas, DFW and have zero credit? We offer financing even if you have zero credit.