No Co-Signer Auto Loan for Credit Borrowers without a Co-Signer

The Need of a Co-Signer

A co-signer is responsible for making regular payments if the credit borrower misses them. Co-signer provides lenders with additional security and so, most lenders make it compulsory for car buyers with:

>> Bad Credit History

>> No Credit Score

>> Young Car Buyers

>> First-Time Car Buyers

>> College Students

Even though lenders insist on bringing a co-signer, you may find it difficult to search someone and convince him/her to become your co-signer. In such situations, you must consider no co-signer car loans.

Decoding No Co-Signer Auto Loan

As the name suggests, no co-signer auto loan is a finance option available for those car buyers who:

>> Are unable to find a co-signer

>> Do not want to find a co-signer

No co-signer auto loan is ideal for car buyers because it eliminates the need of finding individuals with good credit score and convincing them to co-sign the loan contract. The loan is not one of the traditional financing programs, but rather a modern one. It was introduced by the online lending companies along with other options like no down payment auto financing and special sub-prime finance.

Is No Co-Signer Auto Loan costly?

The loan program is available at slightly higher cost. Usually, the loan rate is one to two percent higher than the normal car loan rate because lenders assume greater risk by discarding the need of a co-signer.

How to obtain No Co-Signer Auto Loan at Affordable Rates?

If you find the interest rates expensive, there is one important tip for reducing them and making your loan affordable. By reducing your car loan amount, you will be able to reduce the lender’s risk. If the risk is reduced, he/she will have no problem in providing lower interest rates. You can reduce the loan amount by:

>> Increasing down payment amount

>> Buying a used car or by choosing a new car of lesser value

What are the Requirements for getting the Loan Program?

There are no special requirements for getting no co-signer auto loans. But, you have to fulfil the following general loan approval criteria:

>> Credit borrower must be at least 18 years of age

>> He/she must be employed.

>> He/she must earn at least $1500 as gross monthly income

>> He/she must not have huge consumer debt

>> He/she must not be in open bankruptcy

>> He/she must not have repossession in the recent past

So, don't worry if you cannot manage to find someone to co-sign your loan contract. You can obtain affordable no co-signer auto loans with these simple approval criteria.

Rapid Car Loans is the perfect financing partner for every car buyer. The online auto financing company will help you in obtaining instant no co-signer car loans. You can even submit a loan application for getting no credit car financing without co-signer. Apply now.

No Credit Car Buyers! Be Loan-Ready with this Auto Loan Guide

People with no credit history are often envious of car buyers with good credit ratings. Even though banks and traditional lenders have a strict lending policy for buyers with no credit score, you can obtain no credit auto finance for buying a new car. Auto loans are not impossible for a person without established credit history. Remember that most loan rejections occur because the credit borrower doesn’t have the right knowledge and doesn’t apply at the right place. So, before you apply for a loan, let’s get you ready for the loan program.

Haste is Waste

Car financing is a lengthy process, and there is no quick fix solution to it. To become successful in getting no credit car loan approval, you must approach it like you approach a test. Just like a test needs preparation and hours of study, auto loans also require some planning. You need to learn the requirements of the lender and increase your approval chances.

Create a Car Budget - Without a proper budget for a car and car loan, you will end up choosing a high-priced car. When you buy an unaffordable car, you will increase your chances of ruining the credit score. So, list down all your income and expenses and ascertain a monthly payment amount that is comfortable for you.

Complete the Paperwork - Lenders will require the following documents:

1. SSN

2. Financial Documents like pay-stubs, receipts of utility bills, etc.

3. Bank Statements

4. College Acceptance Letter, if you are a College Student

5. Employment Verification Letter, even if you are part-time employee

Down Payment and Co-Signer - Lenders’ risk increases when they provide auto financing to an individual without any credit history. It is because they cannot ascertain your borrowing history. So, they require down payment or co-signer. Lenders may even require you to provide both the things if you have:

1. Very low income

2. Recently joined work

3. Chosen a very expensive car

Once you are ready with all the paperwork and down payment, you have to make the following choices:

A. Used Car vs. New Car

Today, buying a new car with0ut any established credit history is possible. But, there are chances of receiving slightly higher interest rates. If you earn a stable income of more than $1800 per month (gross monthly income) and can manage higher payments, you can buy a brand new car.

But, if you want to opt for an affordable option, it is always advisable to buy a reliable used car. Once you complete your education and start your job, you can buy a new car. By then, you would have established a good credit history which will be an added advantage.

B. Dealer vs. Private Party

If you want to buy a used car, you have two options. Either you can buy it from a dealership or purchase a vehicle from your friend, colleague or neighbor. It will be considered as private party car purchase. Dealership will provide you with the benefit of warranty and reliability whereas private party purchase will ensure a lower price. Lenders offer no credit auto loans for both the types of car purchases and choose any one.

C. Online Lenders vs. Dealership Finance

When you are done thinking about the car, you have few options to consider for your loan. You can either apply with an online lender or choose dealership financing. Both the options are convenient for a no credit buyer because each provides approval with fewer restrictions.

Once you decide on the above-mentioned factors, you will be ready for no credit auto loans.

Rapid Car Loans is a leader of the auto financing market. It has helped several young car buyers in obtaining auto loans with no credit history. Contact the company for obtaining instant approval on no cosigner car loan program. Apply now.