Cosigning Can Make Your No Credit Car Loan Approval Easy

All first-timers want to know whether it is easy to get a no credit car loan. The answer is both yes and no. Yes, because a person with a no credit history has a higher chance than a person with bad credit to make timely payments. A person with bad credit already has made late or missed payments. But a young college graduate who wants to buy his or her own first car has a better chance of not defaulting on payments. And no because, a person with no credit history needs to convince the lender that he is a responsible and will make regular payments. One way of easing the approval process is by finding a cosigner.

What is a cosigner? A cosigner is a person who will guarantee to the auto lender that you will make timely payments and in case you default, he will be responsible for them. Here are some tips on who can be the perfect cosigner.

>> Requesting a family member, a relative or a close friend to cosign with you is a very god idea. In case you do default on payments you can openly ask him or her to make the payment on your behalf.

>> Find a cosigner with an excellent credit history. The lender will be more comfortable in giving you the automobile loans when he is sure that your cosigner makes credit payments on time. So in case you default on your payments, they have the cosigner to go to.

>> Make sure that your cosigner has the financial condition to bear the responsibility of making your payments in case you default. Because if either you or your cosigner do not make payments, the lender can take you to court.

Asking a person to cosign with you for your no credit car loan is a huge responsibility. You need to protect that person from liability as much as possible. Just getting the car loans with the help of a cosigner is not enough. Make sure that you follow a few things to protect yourself and your cosigner.

>> Your cosigner must be aware of his responsibilities and liabilities before he signs.

>> If due to unexpected circumstances you won't be able to submit your monthly payment, you should first call him up and request for an extension. If your car lender refuses, you should talk to your cosigner as soon as possible and explain the situation. Request him to make the payment for you that particular month and promise to pay it back.

>> Since your cosigner has helped you, make sure that your payments are consistent so that his credit account is not tarnished. As much as possible, try to reduce his liabilities.

>> Once you start making regular payments for a few months, you will have your own credit history. For your next loan, you will not need to take the help of a cosigner.

Taking no credit auto loans with the help of a cosigner is a responsibility you need to shoulder.

Find Out the Ways to Avoid Paying More on Your Car Loan

So you are in the market for a new car. But you don’t have the money to pay for it outright. That’s the scene with most car-buyers. So what do you do? You apply for a car loan to help you buy the car, right? But how do you get the best deal for your car loan and avoid paying more than absolutely necessary? Follow the tips below that will help you do just that.

1> Traditional car dealership loans almost always will give you a worse deal than you can get elsewhere. Always remember that a car dealership is making a tidy profit by selling you the car and by taking a loan from him you will let him make a tidier one!

2> Car dealerships that will offer you 0% interest deals are something you should avoid like the plague. This is because these 0% deals will be yours only if you give up a certain discount. For instance, you can either take a $3000 discount on the car or a 0% loan. When you calculate you will find that you will be saving more money with the discount than with the loan.

3> Another reason you shouldn’t trust most car dealerships for loans is that the “best deals” that they offer only come to use when you take a loan from them. Why would they offer you a loan if they didn’t make profit from it? Sometimes you will get amazing prices on a car only if they finance you.

4> Your credit score is the single most important factor that decides your rate of interest. If you have good credit, your rate will be lower, while a bad credit history will get you a higher rate. If you have bad credit, make sure you make timely payments and clear up your debts for at least 6-9 months before applying for instant auto loans. This will improve your credit score and will make you pay a lot less as rate of interest.

5> Searching online for a car loan will let you browse through the offers by various lenders sitting in the comfort of your home. You will even be able to get online quotes after you submit a few basic details about your financial status. You can compare quotes and apply now for the best deals online.

6> If you are wondering whether a new car or a used car will make you pay less, then there are a few things you have to consider. A new car costs more but gets you a lower interest rate than a used car. Moreover finding financing for a used car more than 5 years old is impossible.

7> Do check what deals your local bank is offering for car loans.

8> Local credit unions are somewhere you should go. They will offer better deals than banks and sometimes even online auto lenders.

Learn more about car loans. It will help you avoid paying more than required.