Can I get a car loan with no credit?
I want to purchase a car, but I don't have any credit. I'm also 26 years old and make a steady income. Can I get a car loan?
While your steady income does indicate your financial strength, you won’t be able to get a car loan by yourself with no credit. You could secure one by having a partner or parent cosign the loan. If you don’t have a cosigner, you’ll need to build up credit first.
If you don’t need a car right away, it’s best to build credit first. It’s as easy as getting a credit card, personal loan, or savings loan. These are “beginner-friendly loans” with smaller balances. It could take one to two years to build sufficient credit before a lender will take you on.
If you can’t afford to wait for a car, enlist the help of another person to be your co-borrower or cosigner on the loan. With a solid cosigner, getting a car loan becomes much easier and may even lower your rates.
Lenders will also require you to maintain full coverage car insurance on the vehicle for the duration of the loan. Use Jerry to compare rates from up to 50 top insurers and register for a new policy—no phone calls or long forms needed!
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