Some lenders offer special loans to people with no or little credit history, allowing them to purchase their first car. Before approving an application for a new car loan, lenders consider both your credit history and your ability to pay. If you have a limited credit history, you may have difficulty securing a loan for a car based on your income and credit score. Fortunately, there are many first time car buyer programs available for those with no credit history.
A number of credit unions have special first time car buyer programs for people with poor or no credit history. Try your local credit union for information on their first time car buyer programs. You may also be able to qualify for special financing through the automakers’ dealerships. These special programs may include flexible requirements for loan approval and rebates on the purchase price. Buying a new car with no credit is an exciting experience, but if you’re unsure of where to start, there are several options available.
You may be restricted to certain types of vehicles with first time car buyer programs with no credit history. For instance, some programs require you to be employed and may only accept part-time jobs. If you’re young and want to purchase a car, search for a lender who specializes in loan programs for recent graduates or students. In addition to checking your credit report, a lender who specializes in these programs will consider your income, GPA, and down payment when determining whether to approve you for a loan.