How do you get a car loan with no credit?
I just graduated from college and I want to get a new car for my new job. The only problem is that I have no credit. What do I need to do to find a car loan if I have no credit?
Securing a car loan if you have no credit is an arduous task. But don’t get too stressed—many lenders are still willing to work with you if you have a cosigner or if you take a few months to build your credit.
While some lenders won’t work with you no matter what, credit unions may still be willing to work with you. However, you may pay a higher interest rate than you would with an established credit score. Some online or third-party lenders may also offer car loans to those with no credit. But their interest rates will likely be high and their terms will be less flexible.
If you’d like to raise your chances for approval, find a cosigner. A cosigner is a person with established credit who agrees to sign on your loan and pay if you default. Having a cosigner with a solid credit score may also result in a lower interest rate, so it’s worth considering.
Finally, remember to negotiate your interest rate. Don’t settle for the first offer your lender makes. Remember that many lenders will also lower your monthly rate if you can provide a larger down payment.
Remember, most lenders will require you to purchase full coverage for your car.
For help finding the best rates on the coverage you need, download the Jerry app. A licensed broker, Jerry can help you compare quotes from dozens of top insurers like Progressive and Nationwide. Users save an average of $879 a year on car insurance with Jerry!
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Read advice from car experts at Jerry
Browse by topics
What others are asking
How does refinancing a car loan affect your credit score?
I’ve been thinking about refinancing my car loan, but I’m worried about my credit score. I’ve worked really hard to get it as high as it is, so I don’t want to lose all that hard work. How will refinancing affect my credit score?
Nov 17, 2021
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?
Nov 17, 2021
How do I remove the center console on a Ford Focus?
The center console in my Ford Focus has a huge crack in it. I want to replace it and I’ve already purchased a new one. I think I know how to install it, but I don’t know how to take out the old one. How can I remove the center console from my Ford Focus?
Nov 17, 2021