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Auto Loan or Lease w/ little to no credit history

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Established Contributor

Auto Loan or Lease w/ little to no credit history

Hello. I'm going to be helping a young family member with his credit, with the goal of getting some transportation soon.
I'm not sure if he even has a credit file it what's on it (likely not much); I'll be checking that today and update this.
We'll be adding him on as an AU to some cards and perhaps get him a secured card. He's looking to get a loan in the amount of $5000. He also just enlisted.
I'm wondering what his options are with a thin file. We're open to all suggestions, just looking to see what they are and what can be done to improve them.
Thank you in advance.



3 REPLIES 3
Frequent Contributor

Re: Auto Loan or Lease w/ little to no credit history

First of all, be careful how much you do for this individual.  I would resist the temptation to co-sign or give him unfettered access to any of the cards you've set him up as an AU.   

 

Did he enlist in active duty military?  If so, when does he report to basic training?  As a member of the military, he'll have easy access to credit for a car.  Lenders know that they can get the money one way or another with someone in the military.  What's he doing for a living now and what's his salary?  If he can get by until his enlistment starts that's the best bet.  




Message 2 of 4
Established Contributor

Re: Auto Loan or Lease w/ little to no credit history


@RobertJ wrote:

First of all, be careful how much you do for this individual.  I would resist the temptation to co-sign or give him unfettered access to any of the cards you've set him up as an AU.   

 

Did he enlist in active duty military?  If so, when does he report to basic training?  As a member of the military, he'll have easy access to credit for a car.  Lenders know that they can get the money one way or another with someone in the military.  What's he doing for a living now and what's his salary?  If he can get by until his enlistment starts that's the best bet.  


Good advice... also too a lot depends on the age of the auto.  Some lenders will go as far back as a 2006 or 2008.  Other lenders have a minimum amount they are willing to lend such as $5k.  He might want to think about joining a military CU such as Navy, USAA, Pentagon etc.  Best of luck with his future and with his loan app Smiley Happy

Message 3 of 4
Established Contributor

Re: Auto Loan or Lease w/ little to no credit history

Thank you both for the great advice! I'll pass it on.
This forum has been so helpful.



Message 4 of 4