How To Get a Car with No Credit History
You’ve compared the prices, taken half a dozen test drives, and finally found your dream car, but you’ve bumped into a small problem. You need a car loan, and you have no credit history. What do you do in such a case? Well, this is the question we often get asked at Broadway Auto Credit in Green Bay, WI, and we’re more than happy to answer it in this blog. Keep reading to find out whether you can still buy a car if you have no credit history and, if so, how.
Can I Get a Car with No Credit History?
Having no credit history makes buying a car much more difficult because the first thing lenders see when getting your approval for a car loan is your credit score. A good credit history or a good credit score is the perfect indicator of your ability to make payments. Lenders will view you as a riskier candidate for a loan if you don’t have a well-established credit score.
However, you can still buy a new or used car without having an established credit score using the following ways.
So, the short answer to your question is yes. You can get a car with no credit history.
Ways To Get a Car with No Credit History
There are many ways to get a car loan without a credit history, but the following three are the most popular options.
Co-Signing: If you don’t have a credit history, one sure-shot way of driving home with a new car is to get a co-signer with a good credit history to co-sign the papers with you. In co-signing, the co-signer agrees to add their name to your car loan and thus takes the responsibility of paying the loan, in case you don’t.
Increasing Your Down Payment: You may also have a greater chance of getting a loan approved if you put up a larger down payment because the loan amount gets reduced; thus, the lender might agree to give you a loan subject to negotiation. However, in this case, you may end up paying more interest on your monthly installments.
Finding a loan That’s Perfect for You: Many used car dealerships, like Broadway Auto Credit, offer expanded loan options depending on your current situation. We have multiple banks or lenders at our disposal, and our finance team will help you find a loan that fits your bill.
Build Up Your Credit Score
Once you’ve been approved for a car loan via any of the above options, you might want to make your payments on time and keep your debt low while building your credit score. It is much easier to get a loan if you can show your lender that you have a good credit history. You can also consider applying for a credit card and making timely payments to get on the credit radar and build up your credit.
Read More: How to Improve Your Credit Score?
Get Vehicle Loans in Green Bay, WI At Broadway Auto Credit
If you’re looking to buy a used vehicle on a car loan in the Green Bay, WI, area, head to Broadway Auto Credit, select your favorite car from our lot and get in touch with our team. You can also choose your car from our online inventory and apply here for online credit approval.