How to Get a Car Loan With No Credit History
- 1). Apply for a credit card. Being approved for a credit card is difficult with no credit, but gas, retail and secured credit cards are usually easier to obtain. Applying and being approved for a credit card allows you to begin building credit, which ultimately makes it easier to buy a car.
- 2). Open and maintain a savings and checking account. Maintaining a positive balance in your checking and a healthy sum in your savings shows that you are financially responsible.
- 3). Make a down payment. Putting a down payment of 20% or more on a car shows that you were committed to save and are committed to paying for the car. Lenders reward down payments, even if you have no credit history.
- 4). Maintain a solid background. Lenders are more apt to give loans to people with a steady income and residency. Utilities, phone bills and any other bills in your name that are paid timely also help your cause.
- 5). Compare dealerships. If your bank will not give you a loan, then shop around various dealerships and talk to their financial departments. Some dealers specialize in giving loans to people with no credit.
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