Who doesn’t love to own a car? It’s a threshold of the Great American dream. If you are buying an automobile for the first time, it becomes all the more exciting. You will always remember your first car because it will give you the sense of immense freedom.
When you buy a car, an auto loan is very obvious in these expensive times. Most first time car buyers face the problem of getting an auto loan. This is because of lack of knowledge and understanding of the car financing world. But, this article will make your car loan journey very EASY.
Possible Problems while Searching for First Time Car Loans
No Credit History
Many first time buyers are very young and often have no credit history. This creates a problem because lenders are not able to judge their credit worthiness. Although, a clean slate is better than a stained one, lenders still consider zero credit a risky factor.
Bad Credit Score
There are many people with bad credit score who will need an auto loan to buy their first car. Having a bad credit history means you had trouble in making payments in past, even if it wasn’t a car loan. Lenders do consider this as a problem while approving your loan.
Low Income
First time buyers usually have low income which is a problem in getting an auto loan. Lenders avoid car buyers who earn lower wages. They have quite simple logic behind it as low income often creates trouble in making regular payments.
Simple solutions for Securing First Time Car Buyer’s Program
Income and Employment Proof
Even if you have no credit score or bad credit history; its effect can be nullified by having a good job. Produce copies of recent pay stubs and get an Employment Verification Letter from your employer. If you are self-employed and have a business, then your IT Returns will be required.
If you have low income, convince the lender that low income is better than irregular income. Also, provide your debt-to-income ratio and show him that you are capable of paying off your debt on time.
Push Yourself for Down payment
Down payment is essential because it reduces the car loan amount. Also, when the lender sees you putting down such a huge amount, he will overlook your zero credit or bad credit history. So, even if you are not ready for making a down payment, start pushing yourself to save for it.
Catch Up with Co-Signing
Co-signing is a phenomenon which helps everyone in dire need of auto loans. Find someone with a decent credit history to co-sign your first car loan. Make sure that the person is financially sound because the lender will require someone with a stable debt-to-income ratio as a co-signer.
These solutions will help you solve all your troubles and problems. Make sure that you are ready with these things before beginning the search of your first time auto loans. It will help you to avoid any problems from the very beginning.
EZautofinance.net is every first time car buyer’s dream. You can get low rate auto loans in an instant by filling 100% secure auto loan application form. Apply now for first car loan and get an amazing chance of building your credit score.
So, get ready for your very FIRST car loan with this ultimate EASY auto financing guide.
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