Would anyone finance a truck for someone with no credit?
My boyfriend is 21 and has absolutely no credit. He’s been driving a POS truck since we met and he has had his current job for about three months and now is saving up enough money to get a better truck. The only problem is we’re worried no one will finance him because he has no credit. No one will give him a credit card because of it and the only reason he wants to finance the truck is to build up credit so he might actually be approved for a mortgage loan in a couple of years.
Are there places out there that will finance a truck if he were to put half down even if he has no credit? We have no one that has good enough credit to cosign with him and we feel like he’s stuck. What other options does he have?
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7 Answers
Yeah, this car dealer is famous for not caring about the credit rating of his customers. (He says so at the end, around 0:55)
Yes. Credit King where Credit is King. They take your entire truck and other assets as collateral.
Have him join a Credit Union with payroll deductions, wait a couple months. Go to loan department at Credit Union
Could his parents cosign for him?
Is he paying rent? Have utilities in his name? One of the traps of being young is the need for things immediately. Save the money, continue to drive the old truck, get more employment history under his belt. Then go buy a truck with a decent down payment and work history.
Save for a couple months then trade the old truck for a slightly newer one, kicking in a little cash. repeat the process until he can get the truck he wants.
Credit takes a while to build. I’ve been building mine for years and cannot swing any appreciable loan at terms that I find acceptable. The last time I tried and actually got approved, the interest rate was in the high-teens; I would’ve had new car payments for a give year old vehicle.
Accordingly, I only drive rigs I can buy outright. Also, having a car loan may actually hurt your chances at a mortgage, depending on how the payments compare to his income. I would take the money that you plan to use for a down payment and buy a truck with that, then build up credit some other way; something that is a smaller percentage of his income yet still big enough to establish a credit history.
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