Owning a car was once the preserve of the rich. Today, buying a car is no big deal. Many kinds of car loans are available and a person wishing to buy a car has to just apply for a suitable loan, take delivery of the car and then pay the car loan installments on schedule. No credit card loan is one kind of loan which can be taken by car buyers.
Whenever one applies for a car loan or for that matter any loan, the lender first checks the credit score of the applicant. A person with a hike credit score will be favored by the lender and generally, the rate of interest is inversely related to the credit score. For those with no credit, there are no credit card loans.
There are certain circumstances in which a person wishing to take a car loan has no credit score
A person who has just finished college may want to buy a car. He has had no reason to borrow any money or make any credit purchase until now and hence has not built up a credit score yet. Now he wants to buy a car with a car loan.
The person wishing to buy the car is new to the country. He has made no credit perches eight nor has the borrowed any money. However, he now wants to finance his car purchase through a car loan.
Another reason for a person to have no credit is that he may have just undergone a divorce. Until now, his spouse may have been doing worthy borrowing and the credit purchases and so the credit score also would have been in her name. Now he needs a loan to buy a car.
There are many people who use on the cash and do not make any credit transactions. Naturally, they would not have a credit score. This could pose a problem when they want to take car loan.
When these people apply for car loans, their request may not be granted just because they have no credit score to speak of. But these people do not have bad credit and it is not fair that they cannot avail of loans for no fault of theirs. There are lenders and car dealers who have loans designed for such people and they are called no credit car loans. The criteria for granting these loans are not credit scores but the value of the car being purchased with sousa’s core lateral and the capacity to repay the loan.
There are many web sites which help people with no credit to borrow no credit car loans. These web sites by up with lenders and car dealers who provide such loans. The loan applicant however needs to furnish proof of employment for a period of a minimum of six months as well as proof of residence.
After finding a suitable own site, the person who wishes to borrow needs to determine the loan amount of that he can afford. He can use online calculators and calculate the monthly installment which he can pay. He can then roughly work out the loan amount and get quotes from different no credit car loan lenders through the website. He can then select the cheapest loan and apply for it. He may be asked for the required documents.
Though all are car loans require some kind of documentation, borrower’s of no credit car loans need to provide some additional documents.
List of documents required
Once these are provided and the loan is No Credit, the borrower can go ahead with the car purchase.
Though borrowers of no credit card loans have no credit score, they can start building their credit by making prompt payments on the car loan every month.