Trying to get a Car Loan with No Credit?

September 20th, 2019 by

Car keys are shown next to an application for no credit car loans in Columbus.

If you live in or around Columbus, Ohio, you can stop asking for FaceBook recommendations for no credit car loans. Columbus, Ohio, offers a few solutions to the predicament, but it’s not as easy as stepping through the door to a business that can just fix your problems. No credit car loans are possible to come across in Columbus, but it won’t come at a low cost. In the long run, it’s better to build your credit before taking out a loan, and it’s not as hard as you’d think.

Take Advantage of Your Location

What’s great about residing in the city is that Uber, Lyft, and other methods of public transportation aren’t hard to come by. You’re not stuck with that paradoxical, “I need a car to get to a job, but I need a job to pay for a car,” that many others face who are also looking into no credit car loans. Columbus, Ohio, allows for wiggle room when it comes to that, so consider yourself lucky. You can get a job that you don’t need your own vehicle for, so try to use that to your advantage.

Of course, there are aspects that hinder your ability to make this work, like the weather for example. The alternative to walking every day is to get a no credit car loan through us. That would allow you to not only get you the car you need to keep up with adulthood but will help you build your credit as well.

Plan Ahead

A woman is pointing to a budgeting chart next to her laptop.

Having a job in the city won’t build your credit, but how you choose to spend that money will. Going out every night and spending all of your money can cause some financial stress. If you do like to go out, make sure to budget your money. Take out a credit card, use that, and be sure to pay it back on time. This isn’t my preferred method of building credit, but it will give you something to work with until you have more options.

Another option is to rent through private landlords because they are more likely to accept the lack of credit than apartment complexes if they feel that you’re a decent person. Keeping costs down by finding a place right outside of the city is a great idea, as long as you’re close enough to be able to use the same or similar methods of transportation, or already took advantage of our no credit car loans. It will probably take a few tries, but finding a co-signer will help immensely. Once you find your place, you can’t drop the ball on common sense just yet. You have the choice to start building great credit or dig yourself into a hole that will be a difficult one to climb out of. Pay your rent on time, don’t be that guy who waits until the apartment manager is banging on the door.

Variety is the Spice of Life

Having a variety of payments you have to make is kind of a headache, but unfortunately, that’s what being an adult is. Don’t just pay your rent on time. Pay your utilities on time. Pay your student loans on time. Pay your phone bill on time. Pay your internet on time. The point is that while just paying your phone bill and/or rent on time is incredibly helpful for building your credit, it’s important to have different types of payments all being paid on time. This is also a good time to get a loan into the rotation as well, though you may still need a co-signer. Talk to the dealerships in Columbus about your options.

Keeping up with the rotation for a while and forming a history of being able to manage this is proof to lenders that you’re capable of handling what you intend to borrow from them. The speed at which all of this happens at determines the impact of an accidental missed payment on your credit score.

What if You Have an Accidental Missed Payment?

Late payments will last seven years from the date that the payment was missed, or the delinquency date. A civil judgment is a lawsuit that you go to court for but isn’t criminal. From the filing date, a civil judgment will also last seven years. A chapter 13 bankruptcy will last seven years as well; however, a chapter 7 bankruptcy will remain on your credit score for ten years. While not necessarily an accident, if you close an account with no negative history, that will last ten years. However, a positive account that remains open will last until it is closed.

Check Your Score

A credit report is shown on a laptop.

You may not even realize if you have something impacting your credit, which is why checking your score even if you believe you have no credit is important. There are a few sites out there where you can check your score for free, but if you want the most accurate credit score, you’ll have to either pay a small amount or check in with a few different sites that are named below.

Credit Karma is a great choice because the site is easy to use you’ll be able to access all of not only your credit but your debts. It lays out all the information you’ll need while assessing your score and what is impacting it. Credit Karma receives a credit report from TransUnion and bases your score off their report. There are advertisements, to offset the “free,” part, however much less than some of the other sites. Credit Sesame is similar to Credit Karma, where your report is taken from only TransUnion. The mobile app allows you to conveniently analyze and manage your credit, loans, and debts.

What’s great about AnnualCreditReport, is that rather than relying on TransUnion alone, they pull a report from Equifax and Experian as well. You can get an idea about your score, but they won’t give you an exact number unless you pay the $8 fee.

IdentityForce and Identity Guard are similar sites in the sense that you can check on your reports and score for free for 30 days; however, if you decide to continue or forget to cancel, you’ll pay between $13 and $20 each month. Paying for these sites will give you benefits such as monitoring public records, account takeovers, and address changes.

What Exactly Makes up your Credit?

When you look at the numbers, it’s easier to see what percentages go into calculating your credit score. The biggest factor is your payment history, making up 35% of your credit score, and it breaks down into account payments, delinquencies, and any public records. Next, making up 30% of your credit score is the amount owed. This can get a little bit confusing because rather than being the total amount of money the person owes, this really means how much of the available credit is being utilized. Length of your credit history makes up 15% which is broken down to how long ago it was that you first opened the account type and the frequency of activity within each account. There are different types of credit that can be used, and having a combination of accounts makes up another 10%, this is where that rotation of payments mentioned earlier comes into play. The last 10% is new credit, which is accounts that you have recently opened or any inquiries of new accounts.

It’s pretty easy to find the car loan you need, which will help you build credit. You can check out your no credit car loan options here on our website.