First Time Buyer or No Credit?

Auto loans for First Time Buyers can be difficult to obtain. It seems like the only way to get credit is if people will just approve you, but no one wants to approve you because you do not have any credit. It might seem like it would be easier if you had bad credit instead of no credit at all. Sound familiar?

The key to buying a car as a first time buyer is to know what you are getting yourself into, and plan accordingly. As a first time buyer, the prospective lender has NOTHING to look at in your history. Without a history, the lender cannot predict how well you will pay your car loan.

If you do not have a credit history, you will need other factors to convince a lender that you will be a good credit risk. Good job time, a large down payment, and/or a good cosigner tend to work best. Usually it is a combination of factors.

If your parents have good credit, and you have never done anything bad on your credit, the easiest route is to have them cosign on your auto loan. Not all parents have good credit, and not all parents are willing to cosign, so this does not work for everyone.

If you have some bad credit, and/or no cosigner, there is a very good chance that you will need a fairly large down payment to get a decent auto loan. Depending on the program you qualify for, the amount required could range between 10%-40%.

The good news is that if you have at least 6-12 months on the job and no bad credit, with a down payment like mentioned above, it is usually possible to get a decent interest rate.

We know how to help people with little or no credit finance a vehicle. Our programs will show up on your credit bureau and on time payments will improve your credit. If you have any questions, you can contact us or just apply on the website and get the ball rolling.