Can I buy a car if I have no credit history?
So I am looking to buy a 2020 Dodge Charger Scat Pack or a 2020 Ss Chevy Camaro, but I have no credit history. Can I still get the car without credit history if I place a $10k-$20k down payment?
Chloe Jenkins · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Usually, purchasing a car if you don’t have a credit history is a challenge—but it can be done. You did the right thing by deciding to place a large down payment. Without a credit history, placing a large down payment and/or
getting a reliable cosigner
are the two best ways to get the car of your dreams.While finding a dealership from which to purchase your vehicle, you should also look for lenders to finance your auto loan. This is where your credit history comes into play.
Lenders use a borrower’s credit history (among other factors) to determine whether the borrower will be able to pay back the
car loan
. Without a credit history, many lenders will consider you a risk and will likely deny your loan application or charge higher interest rates.Placing a down payment of at least 20% of the vehicle’s overall value and finding a reliable cosigner are two ways to improve the lender’s confidence in you as a borrower. In the case of a 2020
Dodge Charger Scat Pack
, which has a price tag of at least $41,000 or a 2020 Chevrolet Camaro Ss
, which costs at least $42,000, your predetermined down payment of between $10,000 and $20,000 should put you in good standing with lenders.Whichever car you end up purchasing, make sure that you get the proper
car insurance
coverage before you drive off the lot. For the best coverage at the lowest price, check out the Jerry
app and find out how much you can save on your premium.View full answer
- Gregory R.
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