answersLogoWhite
Auto Loans and Financing
Personal Finance
Loans
Money Management

If you have just moved to the USA from the UK and do not have a credit record can you establish credit with a car loan?


Top Answer
User Avatar
Wiki User
2010-09-19 10:57:32
2010-09-19 10:57:32

Just remember the lender may want a $700.00 down payment and that over here people drive on the RIGHT side of the road versus back home.

What I suggest you do is open a bank account and take out a small loan...$500 or so. Put that money in a savings account and use it to pay the loan off (so you only pay interest out-of-pocket). Do this a few times, then get a credit card- any major credit card. Keep a small running balance on it for a few months but make your monthly payments on time. As long as you don't miss any payments on the card and loans, in a year your credit rating will be sky-high and you will have a much easier time getting a car loan, and may be able to get a better interest rate as well.

Related Questions

User Avatar

If you have no credit record and no money for a down payment, it is not likely that you will be given a car loan. There are places that offer 'buy here and pay here' options that are not picky about credit checks.

User Avatar

You wreck your credit. Even if you "give the car back", that is called "voluntary repossession" and it ruins your credit. Protect your credit rating. It's hard to establish, and even harder to re-establish... That's why insurance is so important. Wouldn't you just love to be making monthly notes on a totalled out car??

User Avatar

You need LOTS of money, a clean credit history, clean criminal record and a team of guarantors... and that's just for starters.

User Avatar

John Adams, just after the Revolution was sent to Europe to establish credit for the new nation.

User Avatar

Someone with bad credit can get an auto loan financed by either getting a co-signer that has better credit than they do, or going to a buy here pay here type of place that helps you rebuild your bad credit or establish your credit if you are just starting out.


Copyright © 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.