3 Tips For Purchasing A Car When You Don't Have An Established Credit Report

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cars that will fit infant car seats

Not every car manufactured today is built with infant car seats in mind. If you are looking for a new car that will have enough space to use an infant car seat properly, there are some cars that you should avoid and some that you should give serious consideration. I created this blog because I have actually had to sell my car so that I could fit my two kids' car seats in the way they were meant to be installed. It is my hope that other parents can benefit from the information that I have provided here and will be able to find a suitable car for a growing family with fewer issues than I had.

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3 Tips For Purchasing A Car When You Don't Have An Established Credit Report

30 January 2017
 Categories: , Blog


If you have not established much of a credit history, you may run into some issues trying to purchase a vehicle. Here are a few tips that will help you navigate purchasing a vehicle when you don't have a credit score or when you have a low credit score.

#1 Work To Establish A Basic Credit Score

The first thing you need to do is work to establish a basic credit score. You should be able to easily establish a basic credit score if you don't have one. The most basic way to establish a basic credit score is by applying for a credit card. You are going to want to apply for a credit card that is targeted for individuals with low or no credit scores. These types of credit cards generally have a really low spending limit, such as $500 dollars.

Once you apply for one of these credit cards, you are going to want to use the credit card for three to six months before trying to get a car. Set up your credit card to automatically pay one of your bills, then immediately pay off your credit card bill. This will show that you are using and paying off your credit card and will help you establish at least a baseline credit score, which will help you secure a car loan.

#2 Save Up For A Big Down Payment

When you have a very low or poor credit, one way to increase the chance that you will get approved for a car loan is by saving up for a big down payment. Showing that you are able to pay off a sizable percentage of the cost of purchasing the vehicle you want will show lenders that despite your low credit score, you are working to build up your financial health. A large down payment will show that you are able to save money and, thus, should be able to make a monthly car payment on time.

#3 Use Dealer-Available Financing

Finally, if you really need a car right away and don't want to wait to get a car loan through a bank, you may be able to find a dealer who is willing to finance you. There are dealerships that offer their own financing options. These dealerships will generally offer you financing if you can show that you hold a steady job via your pay stubs. With these types of financing offers, you will generally be required to pay a payment every pay period and will be subjected to higher than normal interest rates.

However, you most likely will not be required to make a down payment. This is a good alternative if you need a vehicle right away and can't wait to establish your credit; this arrangement will be most advantageous to you if are able to make larger-than-required payments and pay off the balance before the loan is due. Keep these tips in mind when you visit a dealership such as Milton Ruben Toyota.