Can you take out a car loan with no credit?

I don’t have any credit. I didn’t want to get a credit card because I was worried I’d forget about it. But I heard that you can set up automatic payments for a car loan, so I wouldn’t have to worry about forgetting. The problem is that I have no credit. Can I take out a car loan?

Answer
You can still get a car loan if you have no credit, although it will probably be more expensive. Be sure to compare offers from multiple lenders before choosing one. If you have no credit history, your chances of getting approved for a loan will be higher if:
  • You have a cosigner with a good credit history
  • You make a larger down payment on the car
  • You can prove that you have a steady income
Once you get your car, you’re also going to need affordable car insurance. Download the Jerry app to compare cheap quotes from over 50 insurance providers.
Lauren Smith
Answered on Nov 17, 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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