How to avail of a car loan without a credit score?

Posted by marlafrancis on April 15th, 2021

HOW TO AVAIL OF CAR LOAN WITHOUT CREDIT SCORE?

Having a good credit score is one of the main advantages when you apply for a car loan. However, a moneylender approval can seem to be a little bit intimidating when you have no credit history, i.e. zero credit score because you have never applied for a loan or credit card before. Still, your loan will be available with no credit history or a low credit score. Here are the measures that you should implement to get a car loan without a credit score. 

Prove your income can support EMI payments

Most of the banks consider further factors such as your current salary or income sources. If you don’t have a credit score, you’ll still get a car loan by providing your latest bank statements which consider such as an increment in salary, annual bonus, or any other additional income sources. 

Present records of repayments of your existing bills

Your credit score depends on the timely repayment of your existing debts. So, if you want to avail of a car loan despite having no previous credit history, you have to show records of timely payments on all your debts like loan EMIs, credit card, and utility bills. 

Apply for a joint loan

Even if you’re new to credit or when you have zero credit history, you can still get fast approval on your car loan with an aspirant or a guarantor. Make sure that the guarantor with whom you are applying for a loan must have a good credit history. 

Build your credit score

If you don’t need a vehicle now, you can wait and take some time to establish a solid credit history. Focusing on building your credit score that will help to lower potential interest rate and save your money in the long run.  

Advantages Of Car Loan Without Credit Check Or No Credit Check Car Loans

One of the advantages of avail car loan without a credit check is the ease of obtaining a loan with a poor credit score. Many of the mainstream lenders in the market reject applications from individuals with poor credit scores. The number of credit enquiries is made on the basis of credit score. Repeated rejections by lenders will intensify the score even further. It’s a better option for a lender that does not perform any credit check on the individual. 

In many cases, loans of these types have a quick approval process. If there is no credit, the loan verification process can be done within a few hours. When it comes to car loans, the moneylender is protected from defaults through the value of the vehicle guarantee against the loan. Hence, there is no need for any endorsement when you want to avail of this loan. People option for this type of loan only when there is no other option available. Under these circumstances, this loan can be really helpful. 

Benefits and features of easy car loans

When it comes to car loans, the following benefits and features are offered.

• Some car loans will even finance 100% of the on-road price that means no down payments.

• Car loans are not only applicable for new cars, but used cars can also get a car loan.

• An easy car loan will help you to purchase a car even if you don’t have money.

• Many banks will offer interest rates based on your credit score, so a high score to get a cheaper loan.

• Car loans offer a fixed rate of interest. This means you always have to pay a fixed amount every month.