Can You Finance a Car with No Credit?

Man and Woman Signing Contract

You need a new car—but your credit just isn’t where you’d like it to be. Financing a car or Chevy truck with no credit or bad credit is difficult, but not impossible. Keep in mind that if you have no credit or bad credit, your interest rates will be higher than someone with better credit. However, you shouldn’t just accept the first offer that comes along. Find out how to prepare for your application and get the best possible results with Thomas Automotive on a used Chevy Traverse.

Tips for Financing a Car with Bad Credit

You might be surprised to learn that you can finance a car with no credit or bad credit in Cumberland, MD or Johnstown. However, financing a vehicle when your credit is less than perfect isn’t always easy. You need to do some research ahead of time in order to get the best possible results. Here are some suggestions for how to prepare before applying for financing:

Verify Your Income

You can prove to lenders that you are able to repay your loans by providing proof of employment and income. Bring pay stubs from your employer, a letter from the IRS verifying how much you make, or your bank account information. Ideally, should be able to show that your monthly payments will cost less than 10% of your total take-home pay.

Find a Co-Signer

If you have bad credit, the easiest way to finance a car is with a co-signer. A co-signer is essentially someone who agrees in writing to pay for your loan if you are unable to. If you have no credit or bad credit, getting a co-signer can be tough, but sometimes it’s your best bet.

Take Steps to Improve Your Credit

Getting your credit score as high as possible before you apply can also be helpful. By paying down debts and making payments on time, you may put lenders in a much better mood when it comes time for them to review your application.

If Possible, Get Pre-Approved

Take the time to learn about your options and try to get approved for a loan before a hard credit check is required. This will save time—and it will also reduce the risk that your credit will take a hit during the application process. This can happen if you apply and get turned down for multiple loans.

It’s also important to note that you shouldn’t just accept the first offer that comes along. Make sure that you’re getting a fair interest rate, and don’t commit if you won’t be able to make the required payments.

Make a Large Down Payment

The more money that you can put down, the less you’ll have to apply for. This greatly improves your chances of getting approved for a loan, and it also shows that you’re a serious applicant. Financing a car with bad credit becomes even easier if you have a vehicle that you can trade in.

Which Cars Can Be Bought with No Credit?

While some dealers may offer special bad credit car financing, they will generally limit your choices to cars that are considered “credit safe.” This means that the cost of the car has a relatively low value and there is a good chance that you can make all of your payments on time. If you’re gearing up to apply for a loan, you might start by checking out our used cars priced under $10K.

Apply for an Auto Loan at Thomas Automotive

If you’re ready to apply for a loan, all you need to do is let us know! We’d be more than happy to sit down with you and talk about your options in person. Our Jump Start service can help you get started from your home in Bedford or Altoona today. You can also check out our selection of new Honda lease deals.

 

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