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How to buy a car without credit

how to buy a car without credit

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Save as much money as possible before buying a car. If you can save enough to pay the entire cost of the vehicle, you won't need a credit check. Even if you can't save the entire amount, a dealer is more likely to let you make the purchase without a credit check if you are making a hefty down payment. He will use the car as collateral, and the more money you put down, the less risk he faces if you default and he has to repossess the vehicle.

Gather paperwork that proves your employment and income. This can include paycheck stubs and income tax returns. Even though a dealer might not do a credit check, he will still want proof of your ability to repay a loan if he sells you a car.

Find a dealership that handles its own financing. These dealers typically have less strict policies for their loans, and many specialize in working with people who have bad

credit. They won't do a credit check, but they will charge a much higher than average interest rate.

Choose a car within your price range. When you have bad credit, you can damage it even further if you buy a car that is too expensive and fall behind in your payments. You may be tempted by a fancy vehicle, and the salesperson may encourage you to spend more than you planned. Ignore the temptation and stick to your budget so your down payment will go as far as possible and your payments will be manageable.

Check the contract for hidden fees or other problems before signing it. Sometimes car dealers who don't do credit checks will take advantage of buyers. They may list a higher interest rate on the contract or include fees designed to boost their profit even further. Don't sign a contract to purchase the car until you read it carefully. Question anything suspicious and call off the sale if the dealer will not remove it.

Category: Credit

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