According to David Shellenberger, (FICO senior director), there are around 53 million people in the US alone that don’t have credit scores. Many of these people are fresh grads or college students who don’t have credit scores quite simply because they don’t have any previous experience of securing loans or for that matter using credit cards. Under these circumstances, one question that inevitably crops up is whether you can buy a car with no credit or not. We will explore in the course of this post. So, do read on.
Estimate your Chances of Getting the Financing Option
Now, the very first thing that you should know is that you are required to conduct thorough research before even weighing your chances of being able to be considered for these loans. Initial discussions with your friends might as well lead you to believe that it’s actually very easy to access these loans but it’s not actually so. Though a few of the lenders may initially offer assurance,they will finally end up asking for at least some kind of credit history – if not – then at least for a cosigner.
Don’t Give Up!
Reading this you might as well be eager to give up your plans for applying for a car loan in the first place. But then again, we will ask you to stay patient and don’t let despair set in too fast. Ask questions- instead.
How to Conduct Research
The process, of course, starts with you listing down the names of institutions that are offering or at least claim that they are providing no credit check car loan. Then comes the part where you are listing down questions. Offered below are a few examples!
- Will they provide car loans if you have absolutely NO credit score (i.e. zero credit score)?
- Are you required to get a good cosigner on board in order to secure no credit check car financing?
- Do they resort to any kind of manual underwriting for car loans?
- Even if they are offering car loans without any kind of credit history, then how are they doing it? How does the entire process work?
A Few Questions Answered
These are just a few important questions that your quest for a car loan with no credit check should start with.The key is to understand that there is absolutely no reason to lose hope too early – or else to arbitrarily consider that you will get no credit check car loan too easily – no matter what!
Let us also tell you that getting a credentialed cosigner on board always turns out to be beneficial on many levels. Your credit score is the first thing that your lenders will consider to estimate their risk. When they feed your data to their computers, the first thing that these computers look out for is your credit score. Please make sure that you are requesting someone from your family (either of your parents or sister or brother) or a trusted friend to get on board as a cosigner. Only the ones with good credit history and earning will be viewed with favor.