Wednesday, April 1, 2015

No Credit Auto Loans - The Secret for Buying a Car without Established Credit History

The Birth of No Credit Auto Loans

Traditionally, young car buyers were considered extremely risky because they had no credit history. Lenders had no information to calculate the credit repaying ability of young buyers and so, they rejected their loan applications.

But, things changed with increasing competition. Lenders and online auto financing companies understood that they were losing a large segment of the market by avoiding people with no credit history. So, they introduced a special program called no credit auto loan.

No Credit Auto Loans - The Hero to  Young Car Buyers

Benefits of No Credit Auto Loans

If you are a young car buyer with no credit history and looking for a loan, you will have to apply for a no credit auto loan. The loan program is specially designed for car buyers without any substantial credit history. Following are the benefits of applying for the loan program:

You can buy a Car easily

Automobiles have become extremely expensive. A brand new automobile costs more than $30,000. Even a used car is available for more than $15,000. The higher price of cars has made loans indispensable.

Sadly, people with no credit history were not able to buy a car before the introduction of no credit auto loan. Today, the loan program is a boon for young car buyers because it provides them with a golden opportunity for buying the car of their dreams.

No more relying on Public Transport or Parents

No credit auto loan helps you buy the car of your choice. It means you don't have to spend time in waiting for crowded and unreliable public transport. Moreover, you won't have to convince your parents to let you drive their car. Total freedom, isn't it?

You can get Lower Interest Rates

Most young car buyers without any established credit history shy away from no credit auto loan. They believe that the loan program is expensive and out of their reach. But, the reality is different. You can get low-interest rates by making down payment and bringing a co-signer. Down payment reduces the loan amount and manifests your stable financial condition. And, a co-signer ensures the lender of regular payments. Both these things reduce the lender's risk and will definitely help you in reducing interest rates.

You can build your Credit Score quickly

To get a loan, you need a good credit history. But to build a good credit history, you need a loan.

It is common for lenders to check your credit score before approving your loan application. Previously, young car buyers faced the problem of loan rejection because of their inadequate credit history. But, no credit auto loan has solved this problem. Anyone with no credit history can get an auto loan at affordable rates and build their credit score.

It is a Better Option compared to Leasing

Leasing allows you to rent a car for a specific period of time. At the end of the lease contract, you have two options. You can return the car to the dealer or buy it from him. It means even after paying regularly for several months, you will have no right of ownership.

Such a problem will not occur if you obtain no credit auto loan. Every payment that you make will help you in becoming the owner of your car.

How to Get Started?

Now that you have understood the benefits of no credit auto loan, you must start the process of obtaining the loan program. The loan process is quite easy and can be completed online. You can take help of an online bad credit auto financing company and submit your loan application via internet.

All the Best! Hope you find the perfect no credit auto loan program for your perfect car!

4 comments:

  1. Informative Post! you are sharing valuable information about young car buyers. Really auto loan is beneficial for the buyer who have no substantial credit history. I think this loan is easy as compare to car loans.

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  2. Hi,
    I just stumble upon to your website to know about various finance companies that are dealing with housing loans and i would like to thanks you for providing me such a relevant information about it because it would be useful for my project work . I have also going to include one more similar website that deals with housing loan as well as car loan.

    -Martin

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  3. I hope to purchase my first car in the next three years. Ideally, I'd love to pay cash for it. I probably will take out a loan, however. I've been trying to build a good credit score with the limited purchases I make. From going through this article, however, it looks like there is now an option for those without credit history to be able to take out a car loan. http://foxcarloans.com.au

    ReplyDelete