Trying to get a loan without a credit history is a plight that most people want to overcome. The situation is much like trying to contest for that first job that requires job experience as a qualification. Can you have the work experience even without getting the job? Similarly, lenders intend to see your credit track record without giving you a loan or credit card. How can one build a history when no one is ready to lend money without a credit history?
Is this something that stresses you out? Trying to finance a car without having a credit history can be a daunting task, but this is done every day. What you can’t do is to let yourself liberated from three no-credit myths. Yes, they are nothing but myths!
There is a starting point for every journey. Everyone starts out at the same line with a blank credit record. Believe it, or not but there are several people out there who need to borrow money for the very first time. Not just young adults, who need to buy a new car, get a student loan or a major credit card but people with so many different situations,are attempting to get loan for the first time. For instance, a divorce may cause you to suddenly borrow money with your surname instead of your spouse’s. There are a numerous legitimate reason for not having a credit history.
Many people have misinterpretations of the terms of “No Credit” and “Bad Credit”. In the simplest words, no credit means that there was no credit ever borrowed. The credit cannot be good or bad because it never existed. You have not been lent money for a purchase yet. This myth keeps most people from having a clear idea about the requirements of a loan. And, if you are making on-time, regular payments, you get to build a positive credit record which assures lenders that you can manage your credit well.
Do you know that how lenders make money? Well, they make money by lending money to people. It is absolutely to the advantage of the lenders to extend credit to as many borrowers as possible. That is why, if you are employed and need to borrow money, lenders will be interested to take chance on you despite you have a blank credit history.
If you already know that you would need to finance money on a future car purchase and you have 6 months or a year of gap in between, look forward to companies that borrow cards to people with blank credit report. There are oil companies such as Amico and Bp that are flexible enough to issue cards to new borrowers. Additionally, the department stores such as Macy’s are interested in issuing cards to untested borrowers, then, say Visa. When you manage to receive a card, make sure to use it wisely and make payments regularly.
There are many dealers that can be found withfirst-time-buyer-program for people with limited credit or no credit history at all. If you suddenly need to borrow money for a car purchase, make sure to find such dealers. These dealers are associated directly with an automaker, such as GMAC. Regardless of credit record, these dealers will find the best vehicles to suit your financial and automotive needs. These programs are best for their competitive interest rates and payment plans along with the establishment of a solid credit history that they offer.
There are a multitude of lenders out there even if you need money from them for buying a car, all you need to find them.