If you\’re looking into car loans for first-time buyers then you\’ve got likely got questions about the financing process. How easy is it to get a loan for your first car? Is it possible to get a loan with no credit profile? What are the options?
Don\’t worry, lenders like RoadLoans ensure it is their business to accept applications from people beginning like this. Our process is quick, classy and, if approved, you can even shop and drive the same day.
Here are some tips to help as you go forward.
Tips for first-time buyers needing an auto loan
Consider establishing a credit history
If there\’s little reely on your credit reports, one choices to build up a history of good credit habits prior to when you apply. This will help your credit score, which happens to be typically one of the main criteria useful to determine whether you\’ll get approved and, if that\’s so, what interest rate and other terms you\’re offered.
The Consumer Financial Protection Bureau (CFPB) outlines several ways to establish a credit history, including committing to a secured credit card, acquiring a store card, becoming an authorized user for the credit card account of someone else, for instance a family member, and cosigning or to become a joint applicant on a card.
Find a good lender to apply now
Not everyone has time to build credit and, if you require a loan to buy a car now, you may still apply for financing. Look for a lender that accepts applications from first-time car buyers and the ones with no or bad credit* histories.
Work out what you are able afford
Empower yourself to make smart decisions by estimating whatever you can comfortably afford to spend on an automobile. Online auto finance calculators cause it to be easy to see what a potential amount borrowed and monthly payment will be.
A advance payment may be needed
In some cases there will be a nominal amount down payment requirement on a auto loan for a first-time buyer. Money down shows the lender the applicant is committed to the sale. It will also reduce the loan amount and may even save you money in interest charges on the life of the loan.
Apply with a co-applicant or cosigner
Either of those options will typically strengthen the chances of approval and, if approved, the terms offered. Adding a co-applicant means you\’re trying to find a joint auto loan in which all parties has equal rights to your vehicle and responsibility to your loan. A cosigner is a person who agrees to make any missed payments or repay the money in full if needed, but does not have any rights to the vehicle.
Getting preapproved for the auto loan enables you to arrange financing whenever you want, compare any offers you receive and choose the best option for your situation. You can also know exactly what you can spend on an automobile before you shop for it, to help you concentrate on choosing the right car for the right price rather than having to think about financing, too.
Let\’s say you\’re approved to get a car loan and purchase a great vehicle. Making timely payments on that loan will help to build or rebuild your credit, provided the lender reports your payments to the major credit bureau, which will stand you in good stead when you want to finance another car.
The great things about car loans for first-time buyers with RoadLoans
?We make process of buying a first car easy:
- All credit types accepted
- Fast online application
- Instant decisions
- Apply by using a co-applicant
- Multiple loan offers for approved applicants
- Loan terms as much as 72 months
- Preapproval lets customers shop with confidence
As the net lending platform of national auto lender Santander Consumer USA, RoadLoans has years of experience helping consumers across the credit spectrum fall behind the wheel with financing that work well for them. It takes just a few minutes to carry out our one-page application and, if approved, you\’ll savor a seamless, no-hassle car-buying experience. Just opt for the loan offer that best suits you, download your loan packet and visit the preferred dealer listed inside. We assist 14,000 trusted dealerships throughout the country able to show you select cars, trucks and SUVs.
Apply to get a car loan and get an instant decision.
* \”Bad\” or \”Poor\” credit generally is considered a FICO score around 600 and below by sources along with the Consumer Federation of America and National Credit Reporting Association (reported by the Associated Press), Bankrate.com, Credit.com, Investopedia, NerdWallet.com yet others. The Congressional Budget Office identifies a FICO score of 620 as the \”cutoff\” for prime loans.?FICO scores usually are not the sole factor in lending decisions by RoadLoans.com and Santander Consumer USA.