Car Loan Problems
Some people find that they just don't have a credit problem, but they have no credit. What should you do about this? There really is nothing that you can do about having no credit, except trying to build some credit. You can easily build credit by opening up some credit card accounts before you plan on going for your car loan.
The more cards that you have you will increase your credit rating. You should open up some credit card accounts by simply applying for the cards, using them once or twice, and then going for a loan in about six months or so. You should try to open up the lines of credits way a head of time. It takes some time to find the right car and to define what you are looking for. If you are worried that you have little credit, open up some accounts, but then you have to wait a couple months for it to affect your rating.
Even though your credit rating is important you should know what else the creditors are looking for. The only thing that this card companies care about is if you are going to pay them back in full or if you will stiff them on the bill. The reason why it takes an hour or days for you to get approved for a credit car loan is because there are so many more factors than just your credit report. They care about how much income you have, how long you have lived in the area, and your total asset worth, how you pay your bills, your employee history, your liabilities, and many other things.
Your loan boils down to three things that they really care about. Those three things are character, capacity, and capital. As for your character they need to know that you are employed and are responsible with money. The want to make sure that you pay your bills on time and that you have good relationships with your current creditors for mortgages or maybe other car loans. They need to make sure that you have integrity. This is the most important factor that they look at. They want to make sure that you aren't a flight risk and that you will responsibly pay all the money back along with interest.
As for you capacity, they need to make sure that you bring in enough money to live and to make this large purchase. They need to look at your credit limits, lines, and debts. They want to know if you can truly afford the loan and to live comfortably. Most people can handle a car payment, a mortgage, and the expenses of a family. This is important, but not something that you should worry about. Most people can handle it.
As for the capital it is also considered to be collateral. It basically judges your wealth. This will help them determine if you can avoid the loan as well.