Can you get a car loan without credit?

I just started my sophomore year of college and need to purchase a vehicle for commuting to work and classes. I don’t have enough money saved to buy the car up front and will need to take out a car loan, but I have almost no credit history. Can you qualify for a car loan without credit?

Answer
Applying for a car loan with little to no credit can feel daunting. Fortunately, you can be approved for a car loan without a credit history, but your options may be limited.
Credit score and history are heavily influential in determining if you qualify for a car loan, how much you can borrow, and what your interest rate will be. However, many people, especially college-age individuals, have little to no credit history and will have to find a lender who works with any credit profile.
To find a lender willing to work with you, you should shop around and explain your situation. Ideally, you will find a few willing lenders and can compare offers to find the best rate.
To increase your chances of being approved for a car loan, it helps to:
  • Have a cosigner
  • Make a sizeable down payment
  • Have steady employment and income
Once you have been approved for a loan and found the vehicle you want to purchase, you’ll also need to purchase car insurance. If you want to save money on car insurance, the Jerry app is a good place to start.
A licensed broker, Jerry does all the hard work of finding cheap quotes from up to 50 top name-brand insurance companies and buying new car insurance. You will get quotes in seconds, can make changes at any time, and if you ever have any questions, agents are just a text away!
Jack Walsh
Answered on Nov 18, 2021
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