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How to Find an Auto Loan if You Have No Credit Background

I have no credit so my scores show zip. What I'd like to do is borrow about $8,000 can you help?

I have no credit so my scores show zip. I recently agreed to purchase a 2000 Mercedes at a price of $24,000. I put $19,000 down and now need to borrow the rest. My wife and I together made about $150,000 in 2006. What I'd like to do is borrow about $8,000 to complete the sale and license and insure the vehicle. Can you help? We can make payments.

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Bill's Answer
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Bills.com | Find Learn Save

Given that you do not have an established credit history, you may run into difficulty finding a loan that suits your needs. If you do find a loan, you should expect to pay a high interest rate. Although you will likely pay a high interest rate, this loan will help you establish a credit history which will assist you in obtaining better loan terms in the future.

Bills.com is not a lender, so we cannot loan you the money you need directly. However, I can recommend several possible resources that may be able to assist you in obtaining a loan.

First, I encourage you to visit the Bills.com Loan Resources page.

I would first suggest that you attempt to get the loan through the dealer where you bought the car. They have an economic incentive (the car sale) to get you the loan, and given your high income it should be an easy loan.

If you cannot find a conventional lender willing to extend you a loan, I encourage you to visit Prosper or Lending Club, which are online companies that facilitate person-to-person (P2P) lending. If you offer to pay a high enough interest rate, you may be able to find a person (or people) willing to lend you the money directly. The amount of interest you should expect to pay will vary depending on your state of residence and how Prosper or Lending Club grades your risk to lenders. Review the Prosper or Lending Club Web sites for more details about how to request a loan through its service.

I hope one of these two options helps you obtain the loan you need to finalize your automobile purchase and helps you Find. Learn & Save.

Best,

Bill

Bills.com

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