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Buying a Car? No Credit History Required!

It might come as a shock to most people, but it can be done. A lot of people that don’t have credit history have cars. How about we go over the things that you need to do to get a car of your own? Does that sound about right?

Here is how you can buy your car without having any credit history!

How are you doing?

Now before you do anything else, the very first step that you need to take is to look at how good you are doing financially. What is in the bank, your total assets and what not? Just because you have no credit history doesn’t necessarily mean that you will be a bad candidate for paying back a loan.

Before getting a loan:

Here are a few things you need to check when you want to go for a car loan. Do some budgeting, how much extra money do you have? Have a look at your savings account. Is there any expendable money there? You need that doe because the more you are able to pay as down payment the better.

Don’t have any?

Now if you do not have any considerable amount on you than you need to save up and postpone the “buying a car” plans for a few months. Save enough that you can at least pay 20 to 30% of the down payment.

Do these calculations beforehand:

Also while you are doing all that you need to calculate how much you will need to save every month for insurance, gas expenses and maintenance of the car. Owning a car is going to cost you on a monthly basis, and if you can’t handle that you should reconsider buying one.

Next step:

Now considering that you have cleared all the requirements for owning a car now is the time to see if you can get a loan or not. You have to pull up your credit scores from places like TransUnion, Experian, and Equifax.Have a look at that, if there are any issues or errors get them fixed.

Boosting your chances:

Now as soon as you decided you are in need of a loan opening a credit account will help your chances in getting a green light on said loan. It will help with your credit score immensely. And you don’t need a credit history to apply for it. When you have your credit card, take all the documentation of your card to the lenders when applying for your car loan.

Credit insurance:

Next step is to look into credit insurance with more depth. Specifically for covering loans in a situation where you suffered a loss of income. This will offer you numerous benefits including a safeguard for your credit score against things that you have no control over.


You might be asked to consider an extended warranty or any other policy. However, before you consider taking it, you need to make sure that you will be able to pay for them as they can get quite expensive. Do not answer up front, look into it with detail.

See what they want:

An excellent way to make sure that you will get the loan is to see what the bank wants from their candidates. Usually, that means people with mid or high range credit score and a good income.

But what if I don’t have such stats?

Simple you are in need of a co-signer on loan, someone with those stats which is willing to vouch for you and get into a legal agreement for you. Or you can get a few references just like you would for a job.

Documents you need:

W2 tax form of the following year.

Pay stubs are showing 6 months of employ.

A proposal from your current establishment with the salary listed.


If you have any, you can use them as collateral, which will help a lot to strengthen your case.


If you want a discount on a good way would be to have some certification proving that you went to school or the military. Stuff like your ID card, enrollment papers or diploma count.


Keep a print of your credit report on you. It is way better than them having to look yours up.

Now that all of that is done your next step is to go out and look for a loan. At times the dealership offers you a hand with that, but it is better if you do the work yourself. You have all that you need, we will be seeing you soon with your car.

Updated: September 17, 2018 — 11:20 am

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