In the world of money, no other factor will have as much as an impact on your finances as your credit score. Your credit score is essential to finding an auto loan, personal loan, and even renting an apartment.
Auto lenders will need to see your credit score and report in order to approve you. It can be difficult to find an auto loan with no credit history, but it’s not impossible.
If you are in need of a car but have minimal credit history or no credit history at all, there are a few steps you can take to establish credit quickly:
Take Out a Small Loan
Loans are one of the most effective ways to build up your credit score and credit history since they touch on nearly every single factor that impacts your credit score.
You can take out a personal loan for as little as $200 and repay it over time.
When you make your loan payments on time and in full, positive marks will be added to your credit report and thus your credit score will rise.
Use a Secured Credit Card
A secured credit card is also a great way to establish credit if you haven’t done so before.
With a secured credit card, you provide a deposit up front, which will, in turn, become your spending limit. Once you use the secured credit card and make regular payments, your credit score will rise.
If you were to default on a secured credit card, the bank or credit card company will simply take your deposit away in full. You get all of the benefits of using a credit card without any of the hassles.
Become an Authorized User
Being an authorized user on another person’s credit card account is another relatively fast way to give your credit score a boost.
When you become an authorized user on a persons credit card, all their positive payment history, and on-time payments will help give your credit score a boost. However, if the main account holder on the card begins to fall behind on payments, the negative impacts will affect your score as well.
Getting an auto loan with no credit can be a challenge. If you are looking to buy a new car but have less than perfect credit, CrediReady can help.
Our nationwide network of trusted dealers and verified lenders work with buyers in all credit situations. Take a moment to fill out our free no-obligation loan inquiry form and start shopping for your dream car today!