Where do you go to get a car loan when you have no credit? While having no credit will limit options for financing, there are things you can do to find the help you need to get back on financial track. Repairing bad credit is not an easy task. It takes discipline and patience and wise use of credit wherever it is possible. But, the problem of having no credit can be improved significantly within a year’s time. Two places to find car loans with no credit are finance companies who specialize in no credit car loans and a particular kind of dealership known as Buy Here/Pay Here operations. Both can offer solutions – or big problems.
Lenders, who specialize in car loans with no credit, are in the business to work with you when you’ve gotten to the point where most other lenders would reject you on sight. They are often associated with a credit counseling service, do extensive examinations of your finances, and never charge fees until they’ve fully provided a service – this is a key element to watch for in a real no-credit lender. Lenders charge fees for their services and there’s no reason to panic when you see these charges on the bill. Some lenders will get a little overzealous with some of their fees, but these can be negotiated over and, possibly, reduced or negated when you deal with that lender in a reasonable, and respectful, manner.
For a lender/credit service to demand money before services are rendered is illegal ([clink id=”67″ target=”_self” title=”Understanding Vehicle Financing” rel=”nofollow”]Understanding Vehicle Financing[/clink]). In fact, there are a number of laws in place to protect the consumer from fraud and predatory lending practices. These include the [clink id=”59″ target=”_blank” title=”Truth in Lending Act” rel=”nofollow”]Truth in Lending Act[/clink] which requires lenders to give you written disclosures of the conditions that come with loan agreement before you sign any contracts such as interest rates, length of the loan agreement, monthly payment amounts, finance charges, etc. Since you may need a co-signer for a no-credit car loan, you should also be aware of the [clink id=”52″ title=”Credit Practice Rule” rel=”nofollow”]Credit Practice Rule[/clink] as well. Here, the lender is required to provide written notice to the co-signer about his, or her, liability if you fail to pay the loan. The co-signer is protected from late charges and other contract provisions that the U.S. Federal Government has deemed predatory.
Buy Here/Pay Here dealerships are as good, or bad, as the people who run them. In a nutshell, these dealerships carry the financing on their own vehicles, have strict conditions for car loans with no credit, and charge a high-interest rate on their loans. Many of these operations get a bad rap from consumer advocate groups, but there are car dealerships who make car loans with no credit a priority in their business for the purpose of getting people with low incomes, or credit problems, back into the market. These are not charitable institutions. These are business people who have realized that there is a source of profit to be tapped, a service to be performed, and the possibility of having a good customer for life. While there are certain dealerships that are in the business of separating of car buyers from their money, these can be avoided by contacting the local Better Business Bureau, and other consumer groups, to find out which dealerships are honest, and which are not.
While it takes time and effort to find the right lender, there are tools that can make that job a little easier. LibertyAutoLoan.com can help reduce some of that labor. LibertyAutoLoan.com is a service which connects consumers with affiliated lenders and car dealerships across the country. From a safe, secure website, the consumer can make the decision on who to do business within his, or her, own backyard, or anywhere in the United States. When shopping is made easier, the consumer is more likely to spend money wisely. That’s the goal of LibertyAutoLoan.com – easy choices, wise decisions.