A co-signer is responsible for making regular payments if the credit borrower misses them. Co-signer provides lenders with additional security and so, most lenders make it compulsory for car buyers with:
>> Bad Credit History
>> No Credit Score
>> Young Car Buyers
>> First-Time Car Buyers
>> College Students
Even though lenders insist on bringing a co-signer, you may find it difficult to search someone and convince him/her to become your co-signer. In such situations, you must consider no co-signer auto loans.
Decoding No Co-Signer Auto Loan
As the name suggests, no co-signer auto loan is a finance option available for those car buyers who:
>> Are unable to find a co-signer
>> Do not want to find a co-signer
No co-signer auto loan is ideal for car buyers because it eliminates the need of finding individuals with good credit score and convincing them to co-sign the loan contract. The loan is not one of the traditional financing programs, but rather a modern one. It was introduced by the online lending companies along with other options like no down payment auto financing and special sub-prime finance.
Is No Co-Signer Auto Loan costly?
The loan program is available at slightly higher cost. Usually, the loan rate is one to two percent higher than the normal car loan rate because lenders assume greater risk by discarding the need of a co-signer.
How to obtain No Co-Signer Auto Loan at Affordable Rates?
If you find the interest rates expensive, there is one important tip for reducing them and making your loan affordable. By reducing your car loan amount, you will be able to reduce the lender’s risk. If the risk is reduced, he/she will have no problem in providing lower interest rates. You can reduce the loan amount by:
>> Increasing down payment amount
>> Buying a used car or by choosing a new car of lesser value
What are the Requirements for getting the Loan Program?
There are no special requirements for getting no co-signer auto loans. But, you have to fulfil the following general loan approval criteria:
>> Credit borrower must be at least 18 years of age
>> He/she must be employed.
>> He/she must earn at least $1500 as gross monthly income
>> He/she must not have huge consumer debt
>> He/she must not be in open bankruptcy
>> He/she must not have repossession in the recent past
So, don't worry if you cannot manage to find someone to co-sign your loan contract. You can obtain affordable no co-signer auto loans with these simple approval criteria.
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Rapid Car Loans is the perfect financing partner for every car buyer. The online auto financing company will help you in obtaining instant no co-signer car loans. You can even submit a loan application for getting no credit car financing without co-signer. Apply now.
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