Can I Get a Car Loan Without Credit? Everything You Should Know
Are you thinking about buying a car? If you are then you are probably thinking about financing as well.
If you don’t have enough money to buy the car cash then the next best option is to take out a loan. However, you may be wondering, “Can I get a Car Loan Without Credit?”
In order to take out most loans, you will need to have some sort of credit history. If you don’t, then you will have some challenges. Here is a look at what you can do to overcome those challenges and get the car of your dreams.
Can I Get a Car Loan Without Credit?
The answer is yes. One of the best ways to get a car when you have no credit history is to get someone to cosign on the loan with you. However, you need to make sure that you pay off the loan on time or you will get your co-signer into problems.
Whenever you make a late payment or if you miss one then it will go on your cosigner’s credit score. This means that if you decide to get a co-signer you need to make sure that you do in fact have the money to make the payments.
One of the best ways to get a car loan without a credit history is to have all your documents organized. Have your employment history readily available. If you pay rent you should get a letter from your landlord stating that you are an excellent tenant who always pays on time.
If you have receipts from your utilities you should bring those as well to show lenders that you are a responsible person worthy of any lender’s trust. Any documents that prove you pay your bills on time will assist you with getting a loan when you have no credit history.
Getting a Car Loan for Your Business
If you have a small startup business and need a car for it especially to make deliveries, you may want to try getting a Canada Emergency Bank Account (CEBA). This is a special bank account that you can set up during COVID-19.
The government will give your business 40000 dollars to offset payments to employees and any other expenses that you may have. Ask your lender if you can use some of these funds to help to get a vehicle for your business even when you have no credit history.
You can read more here about a CEBA bank account to find out if it is suitable for your needs.
All Set to Drive
You now have the answers to the question, “Can I get a car loan without credit?”. The key to getting a loan in this situation is to prove that you are responsible.
You can do this by having proof that you pay other bills such as your utilities and rent on time. The other option you have is to get a cosigner for your loan. If you do get a cosigner ensure that you pay on time since this can affect the other person negatively.
You can also look into getting special business loans available to alleviate the COVID-19 crisis. If you would like more information about finances please visit the economy section of the website.