How to Get a Car Loan With No Credit History

Getting approved for a car loan with no credit history is a difficult task. Lenders normally want to ensure that you will pay back the loan, and one way of doing this is checking your credit history. People with no credit history often have a difficult time proving to the lender that they are reliable and can be trusted with paying back the loan. However, getting a car loan with no credit is not impossible.

Instructions

1

Apply for a credit card. Being approved for a credit card is difficult with no credit, but gas, retail and secured credit cards are usually easier to obtain. Applying and being approved for a credit card allows you to begin building credit, which ultimately makes it easier to buy a car.

2

Open and maintain a savings and checking account. Maintaining a positive balance in your checking and a healthy sum in your savings shows that you are financially responsible.

3

Make a down payment. Putting a down payment of 20% or more on a car shows that you were committed to save and are committed to paying for the car. Lenders reward down payments, even if you have no credit history.

4

Maintain a solid background. Lenders are more apt to give loans to people with a steady income and residency. Utilities, phone bills and any other bills in your name that are paid timely also help your cause.

5

Compare dealerships. If your bank will not give you a loan, then shop around various dealerships and talk to their financial departments. Some dealers specialize in giving loans to people with no credit.