How can you get a car loan with no credit?

I graduated from college a few months ago and just moved to a new city for a job. I planned to use public transportation to commute to work, but I learned having a car makes more sense. I’ve been shopping for vehicles, but how can I get a car loan with no credit?

Answer
Congratulations, those are significant accomplishments, and you should feel proud!
Many students and recent graduates don’t have any credit built up yet, and it can make getting a car loan feel impossible. Fortunately, you can be approved for a car loan with little to no credit, but you’ll have to find the right lender.
Credit is the primary factor lenders use to determine if you’re an eligible borrower, how much you can borrow, and the interest rate. However, because you have no credit, you’ll have to shop around to find a lender who’s understanding of your situation. Additionally, to find the best rate, you should compare offers from a few lenders.
To increase your chances of being approved, consider:
  • FInding a cosigner
  • Making a sizeable down payment
  • Having steady employment and income
Once you’ve been approved for a loan and found the vehicle you want, you’ll also need a car insurance policy that has comprehensive and collision coverage.
To compare quotes and find the best policy for you, download Jerry, an insurance comparison app that shops for low prices with over 50 different insurance companies for free. 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 26, 2021
Jack is an insurance specialist and writer living in Buffalo, New York. He has a BA from Union College and worked as an insurance agent with Jerry before joining our content team. He enjoys using data and research to break down complex subjects and convey a story. In his spare time, Jack enjoys cycling, cooking, and exploring Buffalo’s beautiful waterfront.
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