A Cosigner Can Provide You Low Rates Even For No Credit Car Loans!
Usually, a no credit car loan is difficult to get but the subprime lenders have made this possible. Now people can get no credit auto finance easily, and with the help of a cosigner it is even available at lower interest rates.
Apply for a Gas Card or Major Credit Card
For financing a new or used car, needs some kind of credit history. The lenders want some sort of proof that the borrower can pay the amount without defaulting and they can have the idea of their credit habits. When a person with no credit history tries to purchase a car, most of the finance companies will neglect the loan application. Though there are few lenders which will take a chance by demanding higher interest rates. Thus auto loans for people with no credit history are available but it comes with higher interest rates.
Even having a single credit card or any other gas card can add up in getting low rate car loan. The auto finance companies accept those applicants who have previous credit history. Thus if there are no major credit cards or gas cards then start applying. For the first six months, the applicant can pay to their creditors on time and should keep their balance low. When any auto finance company reviews the report, they will consider the good payment history and will approve the loan application quickly. In few cases, even same day auto finance is provided.
Take help of a no credit auto finance lender
While applying for no credit auto finance, one should skip the dealers and find an online or local sub prime lender. Normally the sub prime lenders are good in dealing with no credit conditions. They offer loans to accommodate the different credit types. Thus, applicants who have awful credit history can get their loans approved easily. The auto loan rates offered by the subprime lenders to the no credit history applicants are reasonable and they are usually lower than those offered by the dealerships.
Take help of a Co-signer
Setting up a strong credit history takes a lot of time. But, if anyone wants to get a car loan at lower rate then he should take help of a co-signer. A co-signer will held responsible if the borrower defaults on the loan payment. One can get car loans for bad credit at low rates if he gets a co-signer.
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ABOUT THE AUTHOR
The Author Shelin Michel is working as an auto consultant for new and used auto loans with bad credit at Autodriver; she has provided no credit auto loans to many needy individuals. She believes that providing a co-signer will lower the loan rats.