February 12, 2018 | finance | No Comments
Auto loans no credit history can be extremely handy if you have faced bankruptcy in the recent past but you have adequate income to apply for a loan.
The amount of the loan is fully decided upon your income level and that is why it is very much important that you show the full proof of your income. Usually these loans will cost you a higher rate of interest and that is why it is very much important that you have adequate money in your hand to repay back the loan. Though the rate of interest is on the higher side, but on the other hand you get adequate time to repay back the full amount of the loan. The other thing that you need to take care of is the loan quotes of the different banks. The different lenders charge different rates of interest and that is why it is important for you to know about the loan quotes thoroughly. The advantage with auto loans no credit history is that you can get them very easily and at a very quick time. This is primarily because of the fact that the lenders do not conduct any kind of credit check on their behalf and also because these are processed online by many lenders.
The best possible way by which you can bring down the rate of interest of the auto loans no credit history is by pledging collateral against the loan. Usually this collateral can be in the form of the car that you purchase. The papers of the vehicle can act as the collateral against the loan that you taken from the lender. The way to bring down the rate of interest would be to give more amount of money as down payment for the loan that you have taken. In most of the cases the lenders will ask for an amount of 25% of the vehicle cost as down payment for the loan. But if you can manage some more cash as down payment then you can be rest assured that you have to pay a lower rate of interest.