It’s possible to buy a car with no credit, but your financing options may be limited, and you’ll likely face challenges that consumers with a solid credit history may not encounter.
Lenders typically prefer applicants who have an established pattern of responsible borrowing and making on-time payments.
Can I finance a car with no credit history?
If you have no credit, getting a car loan is a bit trickier, but not impossible. This means that people with no credit can still get a car, but they’ll be paying a higher interest rate, may be required to put up a larger down payment, and they may also need a cosigner with decent credit to secure financing.
How can you get a car with no credit?
How to Buy a Car With Low or No Credit
- [See: 12 Simple Ways to Raise Your Credit Score.]
- Pay cash.
- Consider the length of the loan.
- [Read: The Hidden Costs of Buying a Car.]
- Shop around for financing.
- Get a cosigner.
- [Read: You Cosigned a Loan, They Defaulted.
- Find a “buy here, pay here” dealer.
Can you finance a car with no credit and no cosigner?
People with bad credit, no credit, and no cosigner tend to have difficulty getting an auto loan. Having a cosigner on your auto loan is an excellent way to show the lender that you’ll be able to pay back your loan.
How much credit history do you need to buy a car?
The average credit score needed to buy a car
Those who borrowed funds for used cars had an average score of 655. Experian uses a credit score model of 300 to 850, with super prime borrowers at the top and deep subprime borrowers at the bottom. If your credit score is inferior, you might still qualify for a loan.