Whether you’re a young driver new to the world of credit or simply have been sitting in the red zone due to unforeseen circumstances, having non-existent credit isn’t that uncommon. Unfortunately, it can be a huge barrier when it comes to financing a new vehicle. Thankfully, Mike’s Car Store is here to help! With these three helpful tips, you can be sure to find a reliable vehicle that not only gets you from A to B but that can help build your credit as well!
If you have virtually no credit, putting together a big downpayment will be crucial to getting approved for a vehicle. When financing a vehicle, the banks always see hefty down payments as a good sign of your ability to pay off your loan. Banks that receive a 10 to 20% down payment view this investment in good faith and will be more likely to approve your loan with low-interest rates and better terms.
Depending on your financial situation, it’s typically advisable for buyers with non-existent credit to pay no more than $10,000 to $15,000 on a vehicle. This is especially the case for young drivers who likely won’t keep the car after a few years once their needs have changed.
For most buyers with non-existent credit, having a consigner is critical. It’s best to find a co-signer with a high credit score of at least 750 as well as a long credit history. This person could be a parent, grandparent or older professional who’s known for consistently paying mortgages, car loans, etc. and has incurred little to no debt. This will be crucial to helping you get a low-interest rate and better terms.
Buying a used car doesn’t have to suck! If you’re in the Georgetown, Louisville, and Floyd County areas and looking to buy a vehicle with non-existent credit, buying pre-owned can be a great option. Here at Mike’s Car Store, we offer quality used cars, trucks, vans, and SUVs for all budgets. Browse our inventory today and contact us anytime with your questions as a first-time buyer!