If you need to buy a car and have no credit history, it can be difficult to get approved for an auto loan. Most lenders want to see that you have borrowed money responsibly in the past before approving you for financing. So, if you have little to no proof that you are good at making payments on time, the lender has no way of knowing that you're not a loan risk.
The good news is that auto loan approval comes with an opportunity to build a good credit history by making timely payments. Also, it is entirely possible to get vehicle financing with no credit. You just have to have a plan and look for the right lending sources.
Ways to Finance a Car Purchase with No Credit
If you can hold off on buying your car, you can build your credit up ahead of time. Ways to do this include paying all of your bills on time and applying for a secured credit card. On the other hand, if you need a vehicle right now, there are other options to explore.
- Get a co-signer. A co-signer is someone with good credit who agrees to share responsibility for the loan with you. This person should be a close friend or family member who understands that this is a big commitment. With this arrangement, if you default on the loan, the co-signer is required to make the payments. So, even though having an eligible co-signer will make it easier for you to get approved, all parties should be aware of the risks.
- Find a first-time buyer program. Some automakers offer special programs to buyers who have never financed a car before. These programs typically don't require the applicant to have a credit history. However, a stable employment history and a certain income level are usually required.
- Apply with Drivers Lane. At Drivers Lane, we specialize in helping buyers with bad credit or no credit get approved for auto financing. We work with dealerships that are connected to special finance lenders. These kinds of lenders look at factors other than a credit history in order to provide loans to buyers who might not otherwise get approved.
We also have some tips on how to be prepared when you apply for special financing.
Applying for a Special Financing
Normally, special finance lenders will want to see that you have a steady job, a qualifying income and a stable residence history. So, you will need the following:
- A Valid Driver's License
- Recent Paycheck Stubs
- A Utility Bill Showing Your Address
- A List of at Least Six Personal References
It's a good idea to have all of your documents together before applying. This way, when you visit the dealer, you can get your car more quickly and be on your way toward building good credit even faster.
Quick and Easy No Credit Auto Loan Assistance
At Drivers Lane, our process is quick and hassle-free. At lightning speed, we can match you with a dealership in your area that is connected to the right kinds of lenders. When you meet with the finance manager at your dealership, you might even find out that you can buy your vehicle with little or no money down.
There is no cost or obligation attached to this service. So, go ahead and fill out our simple and secure online application to get started today.