When you pay your bills on time, behave like a good citizen, and have a good credit score, you can get anything on credit.
But if you don’t have a credit history buying a car might seem impossible in most cases. When you want to buy a car on credit without a credit history, some ways can help you master the impossible endeavor.
These ways and methods don’t require you to have a good credit history or credit score. All you need is to try your luck and check your eligibility as per their criteria. Banks and lenders cannot offer you anything without a good credit score, but the following organizations and entities got your back. So without making further ado, let’s explore the ways that can turn impossible into possible. So you can get your very own car without a credit score or credit history.
Manage to have a co-signer
More than one hundred million people in the US have no credit history or a good credit score. These people are unable to get a loan for a car or anything significant. If you are also one of those people, don’t get disappointed. There is hope for you if you can manage to get a co-signer. The person who trusts you and can take the risk on your behalf can be your guarantee to secure a loan for you on their behalf.
That person could be your friend, family member, or anyone with trust in you. That person will get the car loan on their credit card by accepting the following facts.
- They will be the ones getting the loan on their behalf
- Your delayed or missed payment will affect their credit history
- The loan will be added to their credit history
- They could get higher rates or less loan amount because of the car loan on your behalf
Alternative credit data
If it is more difficult for you to find a co-signer, you can have alternate credit data. For example, various organizations like Experian Boost allow you to sign in to their program and manage your transactions through their channel. This way, you will get the chance to create your credit history.
The tradeoff here is that all of your transactions will be shared with the other entity. You will get the score for timely payments and bills paid. The credit history allows you to go to the lenders who are willing to accept the alternate history score. This method will enhance your chances of getting a loan to buy your car.
Various car dealers with name-brand can offer you a loan if you don’t have a credit history. The most important thing to look for in the transaction is the unnecessary add-ons. You must try to avoid the contracts and deals which force you to go for insurances and other feats. The interest rate is the primary concern here that should be written in the contract.