Can you get a car loan with no credit?
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.
What is a no credit check car loan?
A “no credit check” or “buy here, pay here”auto loan is offered by dealerships that typically finance auto loans “in-house” to borrowers with no credit or poor credit. The interest rate on loans from these dealerships can be much higher than loans from a bank, credit union, or other lender.
What is the average interest rate for a car loan with no credit?
Experian Automotive found that for buyers with the lowest credit scores — below 550 — the average interest rate on a new vehicle loan was just below 13% and, on a used vehicle loan, just below 18%, according to Zabritski.
How can I get a loan with no credit?
Here’s how to get a loan with no credit history.
- Use a credit builder loan. There are several tools that can help you build your credit, but a particularly useful strategy for those with no credit is the use of a credit builder loan.
- Look for a credit union.
- Payday loans can be costly.
- Build your credit first.