It’s hard to get credit unless you have credit, but you can’t have it unless you get it. So where can you find auto loans for people with no credit history at all? It’s really not as difficult as it sounds.
There are a lot of reasons why a person might have no credit. Recent high school or even college graduates might have trouble getting a loan because they haven’t taken any time to establish credit. They just don’t have enough of a track record to know how they’ll be as a customer. The only way a credit company will know whether a person will be a good risk or a bad risk is from the person’s credit history, and sometimes, there just isn’t enough to go on.
Another group that might qualify for auto loans for people with no credit history or vehicle refinancing is recent immigrants. If you are brand new in the country, chances are pretty good that you haven’t established any patterns of borrowing or making any payments. Another option is an auto refinance. Many recent immigrants also live in a “cash economy, ” where they earn in cash and pay for all of their needs in cash. This is great from one perspective because it doesn’t tie them to debt. But debt can sometimes be a good thing, at least when people use credit wisely and pay off responsible purchases in a timely way in order to build their credit and buying power.
Americans returning from an extended time abroad might have similar issues. If a person has been teaching English in Korea, for example, or serving as a missionary in the Congo, it’s likely that person hasn’t had a chance to have much of a positive impact on his or her credit rating. When the person returns to the United States and needs to purchase a vehicle, it’s likely he or she will need to go with one of the auto loans for people with no credit history. The same goes for a person who has been deployed abroad with the military, or even someone who has served an extended sentence in prison.
We all need to start somewhere, and sometimes the best place to start is with second chance auto loans for people with no credit history. Making a single responsible car purchase, and then paying it off in a responsible way, is one of the best methods of getting established or re-established with credit. Chances are pretty good that you’ll need credit in the future. If you haven’t made the effort to begin to establish credit, this is one of the best ways to start.
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Proponents of subprime lending...
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