Get Car Credit Without Credit History

A car is an important means of transport and for many it is something they aspire to buy immediately after getting a regular job. However, for many first time buyers they do not have the necessary amount to purchase one with cash and car credit is the last resort. This to most first time owners is not also an option they consider with enthusiasm.

Well they may have good reason. The recent economic downturn may have made things a bit tight and many car financiers have not been too generous with their offers. What makes the situation worse is that someone without credit history is viewed in the same light as someone with a bad credit history. this should not discourage you from getting a car credit as there are options available for you.

The recent efforts by the government to have the auto financiers extend their lending have paid off, and even without a credit history you can still get financing from the various companies. The loan lent to you is a secured kind of loan and therefore the lender reduces the risk of loss.

Since it is a secured car credit loan, your car is attached as collateral and hence you do not assume ownership until the loan is paid. The lender remains with the log book as you use the car till you clear the arrears. If you do not wish to have your car as security for the loan, you may attach your house or any other valuable property as collateral for your loan.

The value for your interest rates will be determined by the amount of your down payment. The general car credit rates vary from 9-10%. To make it more affordable, you need to have a co-signer whose credit history is good. He or she will thus be responsible if you do not repay the loan.

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