Can You Finance a Car with No Credit?
The answer is yes! Although it may be a little more difficult to secure car financing with no credit, it is definitely possible. We have plenty of information regarding no credit car loans and even financing a car with bad credit at Jeffrey Honda. Talk to our finance department about a loan of your own today.
Financing with Bad or Even No Credit
When you’re financing a car with no credit, remember that interest rates will be higher and a higher down payment may be required. Go in knowing your budget and leave some wiggle room. Keep these helpful hints in mind:
- Ask questions and don’t assume you won’t be approved. You may see a financing option that you feel is the only one you can take, but you do have options. Ask questions, like if there are other alternatives that would be a better choice for you.
- Upgrade your credit score. If you have bad credit, build it up before you begin the car shopping process if you can. Use your credit card for small purchases and pay it off right away. This will boost your score in no time.
- Know your budget and your credit score (if you have one). When applying for financing, your credit score can take a hit. Keep all of your loan applications within a 14-day period to limit the potential damage on your score.
- Separate price negotiation from financing. The first offer isn’t the only one. Many dealerships go through multiple lenders.
- Be prepared for a higher cost. It is likely that the interest rate on your loan will be higher, and you may need larger down payment if you have no credit.
- Leasing might be a better option. Consider the benefits of leasing. Leasing can be a great option if your credit is less than ideal. These payments might also be higher than the average lease, but cheaper than attempting to purchase a vehicle.