Can I apply for a car loan without any credit history?

I want to get a car loan, but I have zero credit history. Is it still possible to get a loan? How do I do it?

Can you apply for a car loan with no credit history? Sure. Will you get accepted? The answer to this is a little more complicated.
In most cases, lenders won’t approve you for a car loan without any credit history because you’re too high risk. However, you may be able to circumnavigate your lack of credit history by getting the right cosigner.
You’ll want your cosigner to be someone with good income and a great credit score. Parents, older family members, and older friends are the best candidates for this position.
If you fail to make a payment, your cosigner will assume responsibility for paying off the loan. And unlike a co-borrower, cosigners don’t appear on the car title, meaning you’ll have full ownership rights to the vehicle throughout the loan term.
Once you get your car, whether through direct buying or a loan, don’t forget to budget for car insurance. With the Jerry app, you’ll be able to compare competitive quotes from over 50 top insurers and find the best savings for your desired coverage level.
Eric Schad
Answered on Nov 17, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

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