If you need no credit auto loans then you are likely suffering from a lack of credit or a recent credit fix that has left you with bad credit removed from your report, but no good credit built up.  In this situation, you can get auto credit loans, but there are some qualifications that go along with it, and some options that you should know about. People with no credit have an easier time getting credit than someone with bad credit, contrary to popular mythology, but you’ll still have limited options until you build up a good credit history.

Auto loans for no credit or bad credit are often advertised on television or radio, proclaiming that they will work with anyone, regardless of your bad credit history. While this is true, they really will finance anyone, there are some things that they look at besides your credit history such as how long you have been employed at one job – to make sure that you have job security, and how much you make. They will also make sure that your income isn’t taken up by a lot of debt that you have to pay on each month – called your debt to income ratio (DTI).

These auto loans for no credit will also require a stable home, such as an address that you have lived in for a year or more, as well as requiring that people that get these bad credit no credit auto loan put down a large deposit, or down payment. This is the trick to them financing everyone – with a large enough down payment they truly will finance anyone. If you have extremely bad credit and they consider you a very high risk then they will require around 50% down. This ensures that they get most of the value of the car, plus they will repossess the car if you don’t pay, and therefore costs them basically nothing.

No credit check auto loans also exist in the form of on-the-lot financing.  These auto loans for people with no credit also works if you have bad credit. How they work, is they are financed by the car lot themselves and therefore will require a lot of personal information such as the names and addresses of your friends and family, as well as often requiring that they contact your employer first before they will give you the loan, and verifying a lot of personal information to make sure that they can find and repossess the car if needs be.

However, these type of loans will also require a down payment and it may be fairly expensive as well. However, since these cars on average are around $5000-$10,000 it won’t be huge. Generally, they will require a down payment between $1000 and $2000 dollars, but in some cases they may go slightly higher or lower. However, this is much better than the fifty percent that other car dealerships may charge you on a car loan if you have very bad credit. The downside to on the lot financing is that they will probably not report to your credit and so paying off the car may not benefit you creditwise.

There are in fact a couple of ways to get car loans for people with no credit. If you have no credit history then it is fairly easy to get a little bit to establish a credit history so that you can get the car loan that you want. However, there are ways to get a car loan with no credit if you don’t want to wait the few months that it will take to establish your credit. There are actually a few options for car loans for people with no credit history. We’ll go over a few of the different ways that this can be accomplished here and you can choose the best option for you.

It’s much easier to get financed with no credit than it is with bad credit contrary to popular belief. The reason that this adage exists is that sometimes finance companies are hesitant to offer credit to people with no personal credit history because if you are going to be a risk, they aren’t sure how much of a risk you’re going to be. That’s why its so important to build your credit right the first time. Even a tiny little loan of two payments that you paid off will allow you to get financed faster than if you had no credit history at all.

If you want to finance a car and you have a perfectly clean credit report with nothing on it, then I actually recommend applying for a credit card instead. Getting a credit card is fairly easy if you have nothing on your credit and if you use it successfully for a few months then you will have built up a payment history, albeit a small one, and you’ll be able to likely quality for a car loan even if you have no credit history. Of course, you’ll also need the income to back that up, so that they know that you are going to be able to make the payments and it helps to have lived at your current address for a year or more as well.

Another option for buying your car with no credit history is to go through your bank, especially if you have been banking there for years and have a history, or your parents have banked there for years. Your bank might be willing to take a chance on you for a loan with no credit history since they know you a little bit. Also, your parents could co-sign for a loan for your car. Then you’d be able to establish that credit history with your bank, pay for your car and have them reporting on your credit as well. By the time that the loan and the car payments are paid off you will have a great credit score.

Car loans for people with bad credit are harder. If you have bad credit and have been turned down by conventional finance companies and car lots then you might consider a buy-here-pay-here car lot. This type of car dealership doesn’t do any credit checks and they will finance pretty much anyone, provided that you have a sizable down payment, generally about 25 to 35 percent. They’ll also need to see proof that you have an income and may require weekly or biweekly payments with a clause in the contract that they can repossess after only one missed payment.