Can I get a used car loan with no credit?

I want to get a used car to get around, but I’m going to need a loan and have no credit. How can I do this?

Answer
It will be difficult to get a loan with no credit, but you can increase your chances by adding a cosigner. A cosigner is a third party with great credit who agrees to assume responsibility for your loan if you default or stop making payments.
Parents, relatives, and spouses make great cosigners. Avoid asking friends unless necessary.
In addition to adding a cosigner, be prepared to put down a larger down payment to increase your chances of getting the loan. Giving 10-20% upfront can build trust with your lender.
Be sure to shop around with various lenders and inquire about special programs, like programs for first-time lenders or students (if applicable to you).
No matter how you get your used car, be sure it’s protected with the right car insurance by using Jerry. Jerry pulls competitive quotes from up to 50 providers so you’re never missing out on the best deals for your coverage level.
Lauren Smith
Answered on Nov 11, 2021
Lauren has written for World Nomads, the Matador Network, Korvia Consulting, and once upon a time Three Fates Games. She graduated from Columbia College of Chicago with a BFA in Creative Writing. After graduating, she moved overseas and lived in South Korea where she spent her free time traveling and going on road trips with friends. She misses the rest stop potatoes and is trying to figure out how to recreate them at home. She's now based outside of Chicago and when she's not writing she spends her free time reading, playing video games, and exploring whenever she can.
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