How to Get Financing for a Car With No Credit & Low Income

It is tough to live without a car. If you have bad credit and low income, you may be wondering if you would be eligible for a car loan. The good news is that although you may not get the best interest rate available, you will still be able to get financing for the car you need.

Instructions

1. Improve your credit. Focus on increasing your income, saving money every day and using the funds to pay your bills on time and reduce existing debt. If you don't have a credit card account for yourself or your business, open one to help establish a better credit history. Only charge up to 50% of your available credit limit and pay off the balance quickly. According to the website genxfinance.com (see Resources) you should also avoid collectors, be careful not to bounce checks, and search for lower interest rate cards or a secured credit card with a low interest rate.

2. Have a friend or family member co-sign the car loan with you. If they have good credit, it will better your chances of getting a loan with good terms.

3. Do your research. Spend some time researching cars, automobile lenders and their rates. Ask your lenders what kind of loan would be the most favorable for you. To compare rates for car loans, check bankrate.com (see Resources).

4. Check specialized lenders. There are specialized car lenders online who advertise their "No Co-signer Car Loans." Designed for people with less than stellar credit, these companies can provide loans without the need for a co-signer. Check out some of these companies, such as carmoneyfast.com or carloans-forall.com. Even if they can't provide you with the best interest rates, they are still a good option if you are having trouble obtaining a loan.

5. Apply online and close the loan. After deciding upon which lender to go with and the type of loan that will best fit your needs, complete your application online. You will want to act fast so that you can take advantage of the interest rate that you have been offered. If you wait too long, the interest rate may get higher

References

• Tips to Improve Your Credit

Resources

• Car Money Fast
• Car Loans for All
• Bank Rate