When your credit score is zero or bad, getting a car loan from a financial institution becomes challenging. Due to this reason, several lenders ask you to get a co-signer, so that it increases the chances of getting credit.
However, you may not know people who are ready to take on this financial responsibility, or you want to take an auto loan without help. Regardless of your reason, you want to know how you can get credit without a co-signer. Here are three tips you can use to get a car loan from a lender:
Improve your credit score
If you are in no hurry to get a vehicle, then you can wait for a while before approaching a lender. During this period, you should consider increasing your credit score, so that vendors are willing to accept your application.
You can open a credit card in your name and make the payments on time. If you have other debt, you should repay them regularly. Also, go through your credit report to see if there are any inaccuracies and inform the authorities.
Increase the size of down payment
Another excellent way to get a car loan, despite not having a co-signer is to increase the size of the down payment. By adding more to this amount, you are bringing down how much money you are borrowing from the lender.
As a result, the vendor will understand that you can repay the car loan. Also, it works in your favour, as you will save hundreds, if not thousands of dollars in the long run. For example, a larger down payment will bring down the interest and monthly payments.
Opt for a cheaper vehicle
The last option is to go for an affordable car, which is favourable in the eyes of the lender. The advantage is that it brings down how much you have to pay, which decreases the risk of non-payment.
An easier way to take a car loan without a co-signer would be to approach TakeTheDrive. They provide credit to all types of customers, regardless of their credit score. Also, they will ensure the monthly payments never put a strain on your budget!