Finance Tips

Getting an approval for a car loan when you have no credit history can often times be almost as difficult as getting a car loan approved when you have bad credit. There are things that can be done, however, which will improve your chances of finding a no credit car loan.

Ask your employer for a letter of reference – Include your length of employment, your current gross wage and your current net wages.

Prepare a personal payment history. Included in this history should be a list of all the bills you pay on a monthly basis which are not reported to the credit agencies. Ask your landlord for a letter of reference. Utility companies will also generally provide you with payment histories. If you have any small installment accounts at local retailers which don’t report credit, ask them for credit statements as well.

If you don’t already have one, open a checking account – Have your paycheck sent to your bank via direct deposit if your employer offers this service.

Open a savings account at the same institution as your checking account. Authorize a regular deposit into your savings account out of your paycheck. Link your savings account to your checking account to limit the possibility of an overdraft.

While you are shopping for the car you want and for a lender, set aside additional savings specifically for a down payment on your car.

Once you have taken these steps, you are ready to approach a lender for your no credit car loan.

The first lender you should approach is the financial institution with which you have your checking and savings accounts. Many times banks or credit unions will work with customers who have no credit histories if their accounts are in good standing and they have some sort of down payment.
When shopping for your car, look for dealers who offer credit for first time buyers. You must approach these dealers with caution. Sometimes they will inflate the car prices or charge exorbitant interest rates. Make them aware that you are looking at several lenders and will be comparing their proposals.

Allow your payment to be debited from your checking account – This may help compensate for the fact that you don’t have any credit history for the lender.

Arm yourself with knowledge. Know what the current interest rate is for the most credit worthy applicant. If you have sufficient income, a down payment and no negative credit your interest rate should not be significantly above that rate.
Be realistic about the type of car you select. You may not be able to get your dream car but there are many late model, low mileage cars for which you can qualify when seeking approval for a no credit car loan.

Most importantly, after you have successfully obtained you auto loan, make your payments in a timely manner. Do not overload yourself with debt and don’t have lenders constantly making inquiries about your credit. By following these simple rules, the next time you look for a car loan the process will be much easier.

When you approach a car dealership looking to get approved for a bad credit car loan, the issued of no deposit or no money down can be a real sore subject. Salesmen will most always ask you to put money down and the reasoning behind it never really seems to be clear.

Do you need a down payment in order to get approved? It doesn’t seem likely that a lender will require a specific amount down just to get you approved for a car loan. While salesmen will argue that it’s showing an act of “commitment” on your part, it seems hardly logical.

The reason that a deposit or down payment is not needed is simply becuase of the way that finance managers in dealerships can arrange the numbers to reflect a down payment that doesn’t even exist. Simply by inflating the price of the car by $1000.00, then showing a “down payment” of $1000.00, doesn’t affect the bottom line a bit.

That’s how most every dealership moves the numbers around to show a lender that you have a cash down payment. Is it ethical? That’s for you to decide. It does happen everyday in car dealerships across the country.

So needing a down payment for a car loan really isn’t something that’s required by a lender. While a lender may see the sale price of the vehicle as being unreasonable, and thus not authorize the advancement of the full amount, there is no logical reason that a deposit (down payment) is a condition of an auto loan approval. Even with bad credit.

For people with poor credit, at times it is hard to get the financial help you need. Many lenders don’t want to risk giving out money to someone with a poor credit score, and they don’t care about the cause of the problem which led up to the person no longer having good credit. Sometimes it may be unexpected medical problems, while other times it could be the loss of a job through no fault of their own. Whatever the circumstances surrounding the individual are, the only thing that matters to the bank is your credit rating.

Now at least there is an option for people with bad credit. They can get a no credit check payday cash loan, and even get the money in less than an hour, simply by applying online. There are no application fees involved for this type of loan, and the application and approval process is both fast and easy. The application is a very short form and the paperwork needed to secure the loan is minimal. Sometimes there may not even be a need to supply any documentation at all. Other times a simple copy of a pay stub may need to be faxed. Whatever the situation, a payday loan approval can usually be achieved within an hour, and the funds will be available just as quickly as well. At worse, funding for a payday loan will occur within 24 hours. All of this can be achieved quickly and without a credit check.

When a situation presents itself where money is needed quickly, a no credit check payday loan can be a helpful option no matter what your credit is like. Getting money in less than an hour without having to go through the time consuming application process a bank demands, as well as having to have your credit checked, is a big reason why many people are turning to these types of loans to get the help they need.