Can I get a car loan without a cosigner?

My sister needed a cosigner when she applied for her car loan. I don't know if I'll be able to find a cosigner for my own loan. Can I get a loan without one?

Answer
Yes, you can. In fact, most borrowers do not need a cosigner. They qualify for a loan based on a combination of a steady, sufficient income, good enough credit, and/or a substantial down payment for the car being purchased. Since lenders assess the risk of a borrower failing to pay back the loan, someone who demonstrates an ability and a history of paying back their debt is usually approved.
If you have little or no credit history, or if you have had problems repaying money in the past, your options are fewer and more expensive without a cosigner, but they are out there. There are many reputable online lenders that specialize in providing loans for people who might not meet stricter bank or credit union criteria for approval.
Just be sure to check out your lender before applying to avoid any scams and hidden difficulties. Google the name of the lender and see if there are any complaints, reviews, or news coverage in which they are mentioned. Better to save yourself that headache.
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Jim Donaher
Answered on Mar 12, 2021
Jim Donaher is a freelance writer and manager with over 35 years' experience in the insurance, banking, and investment management businesses. He provides expertise on a range of topics and is able to explain complex industry information in layman's terms. Jim is the author of two books, including Call Him, He's Home: A Guide to Prayer for Regular People and Then Larry Smiled, a novel about life, death, accountability, and salvation. Taormina, Sicily is his happy place!
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