PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Can I take out a car loan if I have no credit history?
I want to get a car but I don't have the cash to do it. I also have no credit history. Can I still get a car loan without a credit score?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Good question! Getting a
car loan
with no credit history isn’t impossible, but it’s certainly difficult. Nevertheless, you still have ways to do it.The reason that you usually can’t get a car loan without a credit history is that the lender has no way to assess your creditworthiness. As a result, they don’t know how low or high of a risk you are. Rather than try to guess, lenders just deny the loan, asthe risk of default is too high for them to extend credit.
However, you may be able to get a car loan in another way. If you have a steady income, the easiest way to do this is to find a car you can comfortably afford and a cosigner.
A cosigner is an individual you know and trust that signs for your car loan, promising to pay the car note if you somehow cannot. This person must have great credit and steady income to enter into the loan, as well as be someone that you know and trust; a family member is ideal. If you can find a cosigner, the lender might extend credit to you.
When you’re budgeting for the new car, don’t forget about car insurance. Every lender requires full coverage car insurance, so you should shop around to get the best rate. To do this easily, check out the
Jerry
app—we’ll help you compare customized car insurance quotes in just minutes from over 50 top insurers.Best of luck with the loan!
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
.webp&w=384&q=75)
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
