Student Auto Loans with No Credit History! Is It Possible?

Students will have the necessity to commute to different places while they are studying. Especially, college goers will have lots of friends and weekend parties. It is not possible to ride the bicycle and reach the destination on all occasions. A car would certainly save the time and of course it gives immense pride and pleasure in driving it. There are several financial institutions offering student car loans at lower interest rates with flexible terms. Affordable luxury is now available to all sorts of student and there are several advantages in getting these kinds of loan amounts.

Instant approval: It is a known fact that students do not have good credit history in fact they have no credit built up. They cannot afford extravagant amount as upfront payment and they have to buy their car with a limited amount in hand. Lenders are aware of this fact and are lenient while offering these loans. Student auto financing with zero credit history are absolutely possible in today's scenario. Thanks to the recession and lenders are aggressively looking out to improve their business sales. Lenders offer instant approval on all student auto loans provided if they meet the minimum eligibility criteria defined by the lenders.

Low interest rates: There is yet another advantage in getting student car loans for no credit history. The rate of interest is relatively kept low and is affordable to most of the students. This reduces the monthly payments for the college students. Lenders might give additional benefits and flexibility to the student loans. Giving more flexibility helps them to gain more business.

Lower Down Payments: Sizeable down payment becomes a huge burden for the students. Lenders will be happy to see the parents supporting the loan process as it will give better credibility on students. If the loan is obtained with collateral security, there are more numbers of chances to reduce the down payment to a greater extent. However, it is highly recommended for the students to arrange for the initial funds which will differ from 15% to 20% of the total vehicle cost. If not, this amount will be added in the loan amount and the student might end up paying a huge amount as interest and will complicate the process.

Co-signer is not obligatory: A lender will usually demand a co-signer if the down payment is very less. However, the lenders are lenient for students and try to avoid this circumstance. This rule depends on the lenders and not all might compromise with this factor.

Online auto financing: Online auto financing are a better option for students. This will help them to obtain quotes from different venders and compare their features. As the competition is very high in the online market, they offer loans at reduced interest prices.

The above said factors will help the students to obtain no money down auto loans and fulfill their dream.

No Credit Car Loans - Tips for Financing Your Car with Zero Credit History

Thinking as how to get better interest rates than what is being offered to you especially when you have no credit score to bail you out? Getting car loans for no credit is not an impossible work, but a tedious task to undertake. You have a disadvantage on which you have to work to make it your strength by some means.

One of the initial steps will be to find as many lenders as possible. And I am not talking of financial institutions or banks because most of them will not like to deal with you. The reason is simple - you have no credit rating. Not having credit rating is not a crime, it just increases the risk. So the traditional financial institutions are afraid to take that risk as it involves an uncertainty of default on loan. Hence we are aiming at those institutions, banks, credit unions, lenders and dealers who are offering the no credit vehicle loan services.

These lenders are willing to take the risk and so they expect a reward. They will offer no credit auto loan at a higher rate of interest than the usual loans. Are you hesitant about the no credit automobile loan after seeing the rates? Do not be alarmed because you have to keep in mind that they are practically taking the risk to finance regardless of your credit history. When you come across such high rates, do not get upset. Instead use your negotiation skills. You can actually bring down the higher rates of the interest offered by the lender by showing your positive points such as your income or paying down payment.

In no credit auto loans, collateral plays an important role. In car financing, the car is part of your collateral. The lenders who are offering no credit auto loan may ask you to put down additional collateral and sometimes ask for a co-signer. The additional collateral should be such that it covers the value of the loan and its interest. They trend to ask for additional collateral comes from the conception that the value of the car depreciate with time. The collateral can be anything from a house, land or another vehicle you may have.

However, it might be that you do not possess collateral. Even then you can avail no credit vehicle loan if you are employed and have regular source of income. Your employment history, amount of income, investments made, etc will come into forefront. Lenders may actually go through the process of checking this information to satisfy them. Your annual salary for the previous year will be looked into because your annual income will be one of the deciding factors. You will have to keep your patience and go through all the paper work if you want to secure no credit car loans.

Once your paper work is over and the no credit auto loan gets approved, visit the dealer of your choice to get that dream car of yours.