How hard is it to get a car loan if I have a limited credit history?

I've only had a credit card for about a year, but I want to get a car loan. Will this be difficult to get with limited credit history?

Answer
Getting a car loan with limited credit history is difficult, but not impossible.
You have a few options to get a loan with limited credit history:
Because you have limited credit, lenders have trouble assessing your risk. Some may eliminate you from contention right off the bat, while others may simply charge you exorbitant interest rates to make up for the risk.
A cosigner can help you qualify for a loan because that person guarantees to make sure the car loan is paid, even if you are unable or unwilling to pay it. A good cosigner has a steady income, good credit, and a decent debt-to-income ratio.
Keep in mind that you also need to budget for car insurance for your new car. Lenders will require full coverage car insurance, which can be pricey, so use the Jerry app to help you find good deals. Jerry compares personalized rates from more than 50 top providers, including Nationwide, Allstate, and Travelers, and delivers the best deals to your phone in minutes for free. The average Jerry driver saves $879 a year on car insurance!
Eric Schad
Answered on Nov 24, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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