Buying a car is almost a rite of passage. Everybody can remember the first vehicle they ever bought and it becomes an important milestone in most of our lives. But lots of people who are considering buying their first vehicle don’t have much (or any) credit history, and wonder whether they can buy a vehicle without it.

The answer is: it depends, but you should always at least try!

The good news is that car dealerships stay in business by selling cars, so it’s in our best interest to help get you into a vehicle, whether or not you have any credit history. So if you’re in the market, it’s always worth looking into it further. 

The way a lender determines whether or not you qualify for a loan is by looking at your credit score and credit history. This gives a lender an idea of how likely you are to repay the loan, judging by your past payment history. When you don’t have any credit history, it makes it more difficult for the lender to determine what their “risk” is when it comes to providing you with a loan.

However, the situation is far from hopeless. There are other factors that come into play when determining whether or not you can repay a loan. One of those things is your current employment situation. If you don’t have any credit history, but you can show that you have steady employment with a good income, then it makes you less of a risk for the lender.

The same goes for any down payment you can come up with, which shows the lender that you have “skin in the game,” and will have equity in your vehicle right away. So if you have money to put down, you’ll put yourself in a much better position.

Lastly, if you’re unable to qualify on your own, you can always try to find a cosigner. This is someone who has better credit who is willing to sign on the loan with you, which will help get you approved. Cosigners can be friends and family, as long as they’re willing to help you out.

So while there’s no way to say for sure whether you’ll get approved or not, it’s always worth trying. Having no credit history shouldn’t get in the way of buying a vehicle if you can make up for it with employment, a down payment, or a cosigner. In any case, if you have questions about buying a vehicle or about the process, feel free to reach out to me and I’ll do my absolute best to get you approved.