Getting A Car With No Credit

Unbelievably, sometimes it may be easier to get a loan for a car when you have bad credit rather than not having credit at all. This is why it is imperative that you use your credit wisely as early as you can. For young people, they can be added to their parents credit card or they can get their own cell phone. Just something that establishes that they are responsible at making monthly payments on time.

However for many young people getting a car is the first time they’ve really needed to use their credit. But there’s no need to worry, there are still ways to get a car loan without having first established a long credit history. Here is how it can be done.


If you have an older car you can sell/give to the dealer they can use that to reduce the amount you owe on your new car. When you’re trying to get a car with no credit, you need the smallest loan possible and trading in your current car helps you lower the amount of your loan.

Down Payment

By making a nicely sized down payment (more than 25% of the car’s value) you are reducing the total of your loan. But making a down payment doesn’t just lower the amount you owe, it also shows the bank that you have a lot to lose if you default on this loan. It shows you have invested a substantial amount of money and would do anything within your power to make sure you get this loan paid off. This is called the loan to value ratio.


Using a co-signer Casino Online with good credit is a surefire way of getting your auto loan application approved. All the co-signer needs to do is show up and sign on the dotted line. By doing so, they are agreeing to be held financially responsible should you ever default on the car loan. You are essentially using their credit to get yourself a car. Consider yourself lucky if someone is willing to be a cosigner for you. Be careful though because if you miss payments you will be ruining both their credit and your relationship.

In closing, if you can do all or most of these things you can walk away from the dealership with your very own car, even if you have never used your credit before.

Jesika is a mum to two sweet little boys. She hoards children's books and sunglasses, and is a sucker for anything bright and shiny.