Can I get a car loan if I have zero credit history?

I have zero credit history, but I also have steady income of about $1,000 a week. Since I've never had a credit card or anything else, can I still get a loan?

Answer
Getting a car loan with zero credit history is admittedly more difficult, but it’s certainly not impossible!
The reason that getting a car loan is more difficult if you have no credit is because the lender can’t properly assess your credit risk. They’ll usually decline the loan and tell you to build some credit and return in the future.
Since your income is steady, however, you may be able to get a car loan with the right cosigner. A cosigner is an individual with great credit and steady income that promises to pay the car loan if you fail to do so. Take care in selecting your cosigner, as finding the right one can even get you a lower interest rate!
If the lender accepts your application with a cosigner, make sure that you also budget for car insurance, as this is a requirement for the loan. To find the best rate, use the Jerry app. You can compare quotes from over 50 car insurers and find the best rate for your needs.
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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