Financing a Nissan with Little or No Credit History

auto loans

Some loans may be difficult to obtain without a long credit history, but auto loans aren’t hard to get approved for. Even if you don’t have any credit history, you can still probably finance a vehicle because the vehicle serves as collateral for the loan. If you live in Elgin, St. Charles or Hanover Park, here’s a guide on financing a Nissan with McGrath Nissan.

An Opportunity to Establish Your Credibility

If you don’t have much credit history, financing a Nissan will have a large effect on your credit score. Without other loans to consider, future lenders, landlords and employers who check your credit will have to make their decisions mostly based on how your auto loan proceeds.

Far from being a hindrance, however, having an auto loan presents you with a significant opportunity. As long as you make your payments on time, your reliability will be reflected in a strong credit history and solid credit score. When people and organizations check your credit in the future, an auto loan could show them that you’re a reliable, credible person. Of course, you have to make your monthly payments reliably for this to work.

Step 1: Look for New and Certified Pre-Owned Nissans in Your Budget

To ensure that you’re able to make your monthly payments, it’s important to select the right type of vehicle.

First, you should choose a Nissan that’s within your budget. Leather seats and a sunroof are nice to have — but so is an extra $100 each month. Try not to get caught up in the extra features, and instead stick to your budget. If you do this, you’ll probably be able to get all the extra features you want in a few years when your credit is more established. (In the following section, you’ll be able to determine what your budget ought to be.)

Second, you’ll want to keep unexpected costs as unlikely as possible. While it’s almost impossible to eliminate all potential unexpected expenses when you own a vehicle, you can greatly reduce the likelihood of needing a major repair by purchasing a new or certified pre-owned Nissan. These vehicles are more reliable than older used models, and they come with warranties. Even though they might cost a little more, the difference in monthly payment is often minimal — and the peace of mind they offer is frequently worth much more.

Step 2: Get Pre-Qualified for a Loan (And Check Your Budget)

To find out how much you can vehicle afford, apply to be pre-qualified for financing. McGrath Nissan’s financing department makes this process easy — it’s just three steps that can be completed online. You’ll quickly know how much you’re approved for, which will help you determine what models you can afford.

Before planning on spending this much, however, look at your budget and see how the monthly payments you’re pre-qualified for would affect your budget. While you can finance up to a pre-qualified amount, you might want to borrow less.

Come Talk with the Team at McGrath Nissan in Elgin

Once you’re pre-qualified, make the short drive from Streamwood, St. Charles or Bartlett to 945 East Chicago Street in Elgin and talk with team members from McGrath Nissan. Members from the financing and sales departments will help you fully understand everything involved with financing a Nissan and show you the models that are within your budget. They’ll answer all your questions and help you because there’s nothing better in the auto industry than seeing a driver who has little or no credit history drive away in a new — and even first — car.