How do I get a car loan with no credit?
I want to get a car loan, but I’m not sure if I’ll be approved because I don’t have any credit. Is there any way to get a car loan with no credit history?
Getting a car loan with little or no credit can seem impossible, but some lenders specialize in clients without credit! All you need to do is shop around for a good lender, start building your credit, and apply for pre-approval.
Since you have no credit, some lenders may dismiss you off the bat. But many lenders will deem you less of a risk than someone with bad credit. All that means is that you can secure a loan if you find the right lender.
Credit unions are a great place to start. As nonprofit organizations, credit unions are dedicated to serving the community—meaning anyone who meets their membership requirements. While requirements will vary, most credit unions will require members to:
- Live in their area,
- work in their district, or
- have a union member in the family.
If you don’t qualify for a credit union, try reaching out to banks and third-party lenders! While they may be willing to work with you, their lending requirements are often more stringent.
To raise your chances of loan approval, see if you can find a cosigner. A cosigner is an individual with an established credit history who agrees to make payments you miss. But so long as you pay on time, they won’t have any responsibility!
Remember that most lenders will require you to have full coverage car insurance before they give you the loan.
For help finding the best rate on the insurance you need, download the Jerry app. A licensed broker, Jerry helps you to compare quotes from dozens of top insurers like Progressive and Nationwide. Users save an average of $879 a year on car insurance with Jerry!
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