Tips for Getting Approved on a Car Loan With A No Credit History
Securing a loan without credit can be daunting. And if you’ve never borrowed money before and can’t find a cosigner to vouch for you, the process can seem virtually impossible.
Where there’s a will, there’s a way, and at Car Credit Kingston we have both.
Read on to find out how to secure the car you want. In fact, by following the Car Credit Kingston loan application process, our loan advisors will ensure you never need to worry about a cosigner to secure a car loan again.
Build Your Case Beyond Having No Credit Rating
Building a case for your car loan before approaching a lending institution is the best way to ensure you’re on the road to loan approval. We’ll run you through the factors a bank will take into account before issuing your application for a car loan.
You’ll be required to have earned more than $1800 before deductions for several months prior to your loan application. Provide last two pay stubs to your credit advisor for proof of salary.
- Time On The Job
Holding secure employment for at least six months is essential to secure a car loan. Ideally, you will have worked for the same organization for 12 months or more.
- Time Living At One Location
A loan advisor will look for signs of your living stability. Residing in one location for over a year is an important factor in proving your living arrangements are secure and well-established.
- Amount Of Down Payment
While it’s not always necessary to provide a substantial down payment to secure an auto loan, a down payment is a solid substitute for a cosigner. The adequate down payment required for a credit approval depends on the value of the car you seek to purchase. Banks like to see that you can afford to pay down the applicable taxes, plus approximately 10 to 15% of the value of the car.
- Total Debt To Income With New Payment Included
Your percentage of monthly obligations in comparison to your income is another factor to be considered. A good rule of thumb is to ensure regular expenses such as rent, student loans and car payments require 45% of your monthly income at most before deductions.For example, if your gross monthly income is $2500, your fixed bills including car repayments should not exceed $1125.00.If this is not possible, consider reducing the amount of your rent or increasing your income. Keep in mind that if you change jobs or living arrangements you may need to wait until you’ve been working at the same place for few months to qualify for a loan.
- Term Of The Loan
Finding a reliable car to fit your budget that can be repaid in the shortest term possible will assist in the approval process for your car loan.
Find a Dealership That Specializes In No Credit Auto Loans
A dealership with the right skills and the expertise to secure a no credit car loans will do their best to find you a loan with the lowest interest rate available.
Car Credit Kingston specializes in securing loans for applicants without previous loan experience. We work with you to build your credit rating as you repay your loan. And when the time is right, you’ll be waving goodbye in the car of your dreams.
Discuss Your Situation With A No Credit Auto Loan Advisor
If you’ve read our guide, you’re ready to take the next step towards your no credit loan. Forget a cosigner – all you need is a dedicated loan advisor with the skills to secure you a loan to meet your budget. Call Car Credit Kingston or book an appointment online today for a free, no obligation car loan consultation. Our No Credit Auto Loan Advisor will have you on the road before you know it.