A person's credit status is the main factor that lenders focus on when they finance a vehicle. If a person has good credit they receive a quality loan, but a bad credit score can bring about a lesser loan type. The same can be said for bank loans with no credit, which certain people seek out when they are financing a car for the first time.
This type of financing can be difficult to qualify for, but not impossible. Just like people get approved for car loans with local credit unions and poor credit, the same is possible with no credit car loans at banks.
Steps Toward Financing a Car with Bank Loans
Much like any other bad credit auto loans companies, banks and credit unions generally feel more comfortable when they have an applicant that has some line of credit, but have been known to make exceptions. The reason this is has a lot to do with the fact that banks can still gauge a borrower without a credit score if they are member who has an account with them. This type of relationship with a consumer allows the to gauge whether they deserve a loan by looking at their checking and savings accounts and evaluating their monthly income and spending habits.
A bank can then take the information they find and begin comparing who much of their income is deposited, withdrawn, and even what is kept in the bank to collect interest. These loan companies that offer special financing can also be more lenient with their process for members who have been around for lengthy periods of time, regardless of their credit situation. Therefore, it is well worth the time and effort to make deposits and withdrawls in person on a fairly regular basis to assist you with establishing a good relationship with bank clerks and managers who may be handling your loan application.
Here are just a few of the top banks that are worth considering:
- Bank of America
- Chase
- Citibank
- Commerce Bank
- HSBC
How to Safely Build Credit
Now just because you may have a good relationship with the clerks and been a long time member, it still doesn't mean that you shouldn't begin building your credit report to help when you apply for vehicle financing. This is fairly easy to do for anyone with no credit, but you have to do it in a way that will only result in your building a positive credit history instead of a bad one. Here are a few methods that can be implemented to help you go from having no established credit to having an excellent credit score:
- Credit Cards with Small Balances
- Secured Credit Card (balance is what you place on the card)
- Get a Small Utility Bill in Your Name
- Use a Co-signer for Your Loan
- Apply for a Small Loan
Any of these tips will work with builiding credit and essentially aid you financing your ideal automobile with little effort. You also want to make sure that you have well established job and income before applying for a car loan , any kind of credit card or other small loans in your quest to build a credit history.
Here at AutoNet Financial we help provide auto financing for people with bad credit. We work with local car dealerships and in house financing dealers to find the best auto loans that accept people with problem credit.
