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Valued Member
aman31
Posts: 43
Registered: ‎06-16-2009
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No Credit - Need Car Loan

Any chances of getting a car loan with no credit? Looking for something newer if possible. I have an old truck that needs a lot of work. Recently divorced and the mortgage was in the wifes name. Income is $50k per year. My first thoughts are to apply with Capital One auto or roadloans online. I dont want to even look if not approved. TIA.

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Valued Member
aman31
Posts: 43
Registered: ‎06-16-2009
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Re: No Credit - Need Car Loan

Also, forgot to add that I was thinking about getting a secured credit card. Would this help? I could possibly wait 3 to 6 months before purchase, but not much longer. If yes, to a secure card, any suggestions for a company to go thru.

Starting Score:
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pizzadude
Posts: 9,674
Registered: ‎01-28-2010
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Re: No Credit - Need Car Loan

 

When you say "no credit" ~ do you literally mean that you do not have any CCs, installment loans, or anything ?  

 

What is showing on your Credit Reports now ?   Are you able to get a FICO score ?

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Moderator
Revelate
Posts: 9,547
Registered: ‎12-30-2011
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Re: No Credit - Need Car Loan

If you can get six months:

 

- get the secured card (plenty of reviews in the Rebuilding forum, heck get two even).

- save up as much as you can for a downpayment.  Downpayment > all for car buying.

 

Beyond that, as Pizzadude suggested, pull your reports anyway and see what you have on there, that might make a substantial difference in your approval chances and at what rate.

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
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Valued Member
aman31
Posts: 43
Registered: ‎06-16-2009
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Re: No Credit - Need Car Loan

Literally no credit, no score available. Two of three agency replied with no file found. Ex-wife bought house before we were married and I've paid cash for cars in the past, so no need for any credit before. I tried to get a store card about five years ago and was actually turned down. I knew I needed to built credit, but i've enjoyed living debt free. If I go the secure card route and wait six months, am i still looking at a higher rate? I was thinking about three thousand down.
Starting Score:
myfico score watch 576 (6/4/14)
Established Contributor
teenastie
Posts: 638
Registered: ‎07-28-2011
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Re: No Credit - Need Car Loan


aman31 wrote:
Literally no credit, no score available. Two of three agency replied with no file found. Ex-wife bought house before we were married and I've paid cash for cars in the past, so no need for any credit before. I tried to get a store card about five years ago and was actually turned down. I knew I needed to built credit, but i've enjoyed living debt free. If I go the secure card route and wait six months, am i still looking at a higher rate? I was thinking about three thousand down.


Maybe,

 

The problem that exists is the finance companies don't know how you handle your debts: good, bad, or indifferent. They don't know if your so wealthy that you pay someone very dependable to pay your bills on time. Or if your so absent minded that you can't remember the last time you blinked. If you show no history you are a risk. In fact you are a high risk. You may need to extend an olive branch in the form of a very large down payment to show you are serious about paying off your debt. It's the price you pay when you pay cash for everything. On the other hand, your money was kept for yourself and you didn't need to pay a dime in interest or annual fee (which is nice until you need to apply for a loan). 



Moderator
Revelate
Posts: 9,547
Registered: ‎12-30-2011
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Re: No Credit - Need Car Loan

[ Edited ]

aman31 wrote:
Literally no credit, no score available. Two of three agency replied with no file found. Ex-wife bought house before we were married and I've paid cash for cars in the past, so no need for any credit before. I tried to get a store card about five years ago and was actually turned down. I knew I needed to built credit, but i've enjoyed living debt free. If I go the secure card route and wait six months, am i still looking at a higher rate? I was thinking about three thousand down.

In almost anyone's case, six months (getting a credit score) is better than having no score at all.  Your APR is going to be high regardless, but it opens the door to a lot more lenders.

 

I know how you feel, I did the same thing for the past 17 years as you, and only recently started to build a score up in preparation for a mortgage, though in my case I had some silly negative items on there, which sounds like you don't.  Take a few hundred of that $3K and get two secured cards, you don't need much of a limit, you just need to run some transactions through them and start generating a payment history.  In this case you're not really generating debt, you're simply using the cards to float your expenses for a month (average 15 days but whatever, just pay in full regardless to stay out of debt) and most cards are 0% interest during the grace period too.

 

Wander over to the rebuilding forum and look at some of the information there in terms of building credit.  Also, in your specific situation, you may want to consider a two-step dance: get whatever car you can for 2-3K with plans to last you a year or two at the outside, and then finance a new (or newish) car.  I'd keep this one as a backup anyway just in case you can't get financed now.

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
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Moderator
pizzadude
Posts: 9,674
Registered: ‎01-28-2010
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Re: No Credit - Need Car Loan

Even if you go the route of getting a CC and waiting 6 months, I think it is going to be tough to get financed for any significant amount of money without either putting a lot of money down - like 50% - or without a co~signer.
March2010 FICO® ~ 695 TU, 653 EQ, 697 EX

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