Which is better or which is worse when it comes to buying a car and getting approved? Auto loans for people with bad credit and no credit are available through a wide variety of sources. Knowing which one to use is a challenge. This short article will help to point you in the right direction in your search.
Bad Credit
This can depend on the severity of your situation. If you've had a recent repossession in the last few weeks and are trying to get a car loan, chances are that those late payments are going to be showing on your credit report and there just won't be any help for you. Buy here, pay here car lots that finance their own vehicles would be about the only finance option that you would have. However, if you just have the typical old bad credit blues that many people have, then there are good options to help you to get back into the game and get that credit report built back up with a good auto loan.
No Credit
If you have no credit history whatsoever, there are companies that are willing to give you a first shot at car credit. Rather than your credit report or beacon score being a key player in the credit decision, your time on the job, whether or not you are a college student and other credit references will come into consideration. How long have you been working in the same industry? Have you lived at your current residence for 6 months or more? Your monthly income will make a difference in the amount of "car" that you can buy.
In Summary
Bad credit vs no credit is a very broad debate. Someone with mild credit problems may qualify for more of a car loan than someone with no credit and little income. Every situation is different and the your particulars are unique to you.
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