How to Get an Auto Loan Without Credit

Need an auto loan without credit? It is possible, and it may be easier than you think. Run through these steps, consider your options, and get an auto line without credit.

Instructions

1




THINK ABOUT FAMILY AND FRIENDS FOR HELP WITH YOUR AUTO LOAN.

If you have bad credit, or no credit, one of the best ways to get it is to ask a close and trusted family member. Be sure to explain your situation and give them plenty of room to say 'no thanks' without feeling awkward. Before you ask though, be sure to know the options. See the next two steps for two options. Otherwise, skip to step four.

Just be sure you aren't always asking family and friends for money and help. Make it a one time deal and make sure you pay it off on time or even early.

2




DRAFT A LEGAL PROMISSORY NOTE WITH YOUR FRIEND OR FAMILY MEMBER

Your personal lender can pick the percentage and set up the pay back period. Promissory notes are available for free online. You can even pick up a free amortization table online and they might as well be the bank. Let them know you will pay automatically every month. (See tips below)

3




GET A CO-SIGNER FOR YOUR AUTO LOAN.

If you know someone with excellent credit you can piggy back on their credit. If someone is willing to cosign a loan with you at the bank they are truly offering you a huge favor. This lets their good credit build your credit. However, if you don't pay the loan, their credit suffers. Do not break their trust.

4




GET HELP FROM THE AUTO DEALER FOR YOUR LOAN.

Sometimes an auto dealer will lend you money themselves. If there is a good reason you don't have credit that you can prove, this may be an option for you.

5




CONSIDER PEER-TO-PEER LENDING SOURCES

If you don't have family or friends who can help, and neither banks nor auto-dealers will help turn to the online community. You will have to create a profile, reveal your credit number, and decide the highest interest rate you are willing to pay on your auto loan. Since these sites often base their loans on a 360 month cycle, it fits well with an auto loan.