If your credit history is not enough, you may be able to get a car loan. Depending on your current employment and residency situation, you may be eligible for a no-credit car loan. But first, you must do the necessary research and make sure you work with a car dealer who has experience in managing borrowers with no credit history.
If you are considering a non-credit auto loan, you can take some preliminary steps to become a better candidate:
- Establish a checking and savings account – Lenders like to see a stable financial environment. Borrowers with an established relationship with a bank or credit union are considered to be responsible. Just make sure you have not used your account at any time in the past.
- Request a credit card in advance – You can use and keep a credit card to build a credit history before applying for your car loan. Gas and store cards are generally easier to obtain. If you do not qualify for a traditional credit card, you can get a secured credit card, which requires a deposit. It is important to ensure that the issuer of the card is under a credit bureau. Otherwise, it will not help you establish a credit history.
- Maintain a stable background – Candidates with a stable employment and residence history will have better results with lenders. Having a utility and a phone number in your name is almost necessary if you do not have a credit history.
- Having a loan co-signer – With no established credit history, you will have a much better chance of being approved if you have someone with good credit to excellent loan to co-sign your auto loan.
We work with a network of dealers specialized in this area of financing, and we will put you in touch with one of them in your area. These dealers have access to a number of financial institutions and will seek funding for you.
Apply for a car online loan for bad credit
We may be able to help you with money up front. Simply fill out our quick and easy car loan application form to start the process today. The service is free and no obligation is required.