Car loan without credit – what are the requirements?
Basically, it is very difficult, if not impossible, to get a car loan with no credit rating. However, this does not mean that every person who has a low, fluctuating or irregular income has no chance of getting a car loan. The car remains the property of the dealer until the customer has paid for it in full. It doesn’t matter whether he paid the purchase price in cash or took out a loan.
Requirements for a car loan
If you want to take out a car loan, you have to meet essentially the same requirements that apply to any other personal loan. This means in particular that the Credit Bureau information must be in order and the income must be sufficiently high. A car loan with no credit rating is neither issued by a German nor a foreign bank.
If the borrower’s collateral is insufficient, it is still possible to provide a surety and still make borrowing possible. Foreign or private lenders generally do not provide Credit Bureau information. However, they too want to know whether the customer is likely to be able to repay the car loan properly and on time.
Compare loan offers
Not only with an installment or consumer loan, but also with a car loan, it is strongly recommended to carry out a comparison and not only pay attention to the possible loan amounts and the amount of the monthly repayment rates, but also to the interest and other conditions.
If you hire a credit broker to find a suitable car loan, you should make sure that it is a reputable credit broker who does not make unrealistic promises. Should he claim that it is easily possible to obtain a car loan without creditworthiness or charge any costs in advance, it can be assumed with certainty that it is a dubious credit broker.
Application, approval and repayment
You can apply for a car loan either online, at the bank or at the dealer. The creditworthiness is then checked. If everything is OK, the customer can have his money within a few hours or days. A car loan is expressly earmarked and must not be used to finance other consumer goods. The repayment is contractually regulated.
This affects not only the amount of the monthly loan installments, the amount of the annual percentage rate and the length of the term, but also the question of whether early loan repayments or special repayments are possible. Anyone who can be sure that he expects a larger sum of money in the near future should insist that the right to special repayments be included in the loan agreement. However, prepayment penalties could be calculated here, which vary depending on the bank.