If you have to get a car loan, be as pragmatic as possible.
- Know your credit score going in.
- Shop for a loan before you go to the dealership and use those offers as leverage to get the lowest APR possible.
- Keep the term as short as possible and put money down.
Method 2 Getting a Car Loan if You Have No Credit
- Open a bank account. If you have no credit history, the first step towards getting a car loan is opening a bank account.
- Save up for a down payment.
- Gather your documents.
- Get a cosigner.
- Ask your bank about loans first.
- Ask car dealerships next.
- Make payments on time.
Understanding How Your Bad Credit Affects Your Car Loan
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2 more rowsGet Car Financing Even with poor credit.
- Step 1: Get a Copy of Your Credit Report. When shopping for a low income car loan knowing exactly what is on your credit report can be invaluable.
- Step 2: Look for the Loan.
- Step 3: Make Sure to Have All of Your Paper Work.
- Step 4: Shop.
- Step 5: Cosigners.
- Step 6: Down Payment.
If you own your car outright, you could use it as collateral. If you have a car loan, you might have enough equity. You would need to owe less than its value. To find out, estimate your car’s value at one of the car pricing sites such as Edmunds.com, and compare it to the payoff amount of your car.
Where can I get the best car loan?
The 7 Best Auto Loan Rates of 2019
- Best Overall Rates: Consumers Credit Union.
- Best for Bad Credit: SpringboardAuto.
- Best Big Bank Lender: CapitalOne.
- Best for Refinancing: OpenRoad Lending.
- Best for Tech Junkies: Carvana.
- Best for Shopping Around: LendingTree.
- Best for Shopping Around for Refinancing: Lending Club.
Photo in the article by “Flickr”