finding a vehicle for a growing family

Are you hoping to purchase your dream car soon? Don't have the credit to do so? Have no fear! While it may be more expensive to buy a car with bad credit, it is very possible. Most lenders will want to see a down payment so start saving towards this. You can also ask family and friends for help. Lenders are also interested in your ability to meet your payments. Gather all the necessary documentation to prove you can repay your loan such as pay slip, bank statement, and recent utility bills.

There are several financing options you can consider but take time to decide which one is best for you. Below are three options.

Personal Loan

Banks, credit unions, and other lending agencies provide financing under certain conditions.  Try acquiring a loan from your bank since they will have your information and banking history. If you don't have a bank account, consider opening one and start building your reputation. If your financial position is solid, the bank may consider lending you the full cost of the car.  With this method, you can get a comfortable payment plan with affordable monthly payments over a period of time.

Family and Friends

Asking family and friends for a down payment is a good start. However, you may know someone who is willing to give you a loan at a lower rate than the lending agencies.  The other option is to ask a family member or friend to cosign on a loan. Choose someone with a good credit history, of course! The tricky part with this option is that if you default on a payment, your co-signer will have to step in. Otherwise, your family member or friend's credit will be negatively affected. Also, it can put a strain on your relationship.

Private Lenders

Some private individuals will offer you a loan after you sign an agreement accepting terms and requirements for the loan.  Normally the agreement will specify clearly the interest rate, the amount to be paid monthly as well a specified end date.  Persons who do not qualify for a bank loan choose this option.  It is usually the most expensive so consider it as a last resort.

So, if you wish to buy a car with no credit, don't be discouraged. There are ways to get around it. Explore your options, pay attention to the fine print in contracts, and you're good to go!