Little or No Credit History? Go for No Credit Car Loans

Thinking of no credit car loans lately? Are you an auto first time buyer? If your answer is yes to both questions, you may either be a student, recently widowed or divorced, or a new immigrant to the United States. It may also be simply because you've never had a need to establish credit before. Whatever your reason, there are now many ways for you to get an auto loan even if you don't have a credit history.

The Fair Isaac Corp, the 'creators' of the FICO score used by nearly all lenders to check on one's credit history, states that about 50 million people in the US do not have enough data on file to generate a valid FICO score. And without this, your chances of getting an auto loan at prime rates is very slim. This of course does not mean that you cannot get a car loan at all.

There are many online lenders offering car loans to people of poor or bad credit AND to those who have no credit history at all. However, you can take it for granted that the loan you will get will be at a nonprime rate. Not happy with this deal? If you can put off getting that car, it might be worthwhile to establish your credit history first. Getting a credit card is one of the first steps you can take in this endeavor.