No Credit Car Loans

Even it you have no credit history, you can still get approved for a car loan. With a car loan, you can purchase your vehicle and build your credit history. Online car loan lenders make shopping easy, and you can find low rates compared to traditional banks.

Get Started

Before you launch into car loan shopping, take a look at your credit history. Even if you have never opened a credit card account, you still have a credit history. Regular bill payments count as well as a checking account. Hint - open a checking account if you haven't already.

Plan On A Down Payment

With no credit, you get treated much like you have bad credit with financing companies. To offset the risk of your loan, plan on putting down a large down payment. You may get away with a down payment as little as 5%, but 20% will ensure lower rates.

Research Companies

Online car loan lenders offer several different types of financing. Request quotes from both traditional lenders and subprime lenders. Subprime lenders provide financing to people with adverse credit. Usually their rates are only slightly higher than a traditional lender with few fees.

Evaluate Rates And Terms

To find the best financing for your automobile, evaluate rates and loan terms by your financial goals. While low rates will save you money, you will often have a higher monthly payment. Decide how much you can afford monthly and look for a package that offers the best price within those figures.

Get Pre-approved

When you have settled on a lender, go ahead and get pre-approved. By filling out the paperwork online you will save yourself time and money through reduced fees. Once approved, you can then go car shopping like a cash buyer. You have the option to buy through a car dealership or through a private individual.

Think Refinance

Even car loans can be refinanced today. If you find yourself with a less than ideal loan rate, you can plan on refinancing your loan within a couple of years. Take the remaining time to build up your credit history by making regular car payments. With your approved car loan, you will also be able to qualify for credit cards to help build your credit score.

To view our list of recommended auto finance companies online, please visit this page: Recommended Auto Loan Companies Online.

Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.

Latest News


The Star-Ledger - NJ.com
General Growth gets 2-week reprieve on loans
Chicago Tribune, United States - 1 hour ago
The real estate investment trust said it and the syndicate of lenders "are continuing their discussions" on a longer-term extension to the loan, ...
GGP Gains Two-Week Extension on $900M Loans GlobeSt. com
General Growth gets 2-week extension on $900 million in loans Chicago Daily Herald
General Growth Properties gets loan extension Bizjournals.com
The Associated Press - Reuters
all 121 news articles

Wall Street Journal Blogs
Restoring the flow of credit to entrepreneurs
Los Angeles Times, CA - 10 hours ago
A Treasury Department program aims to make it easier for lenders to find buyers for the loans they make. By Cyndia Zwahlen The credit crunch looks like an ...
Forbes: Let the Small Business Administration work Austin American-Statesman
SBA Applauds Treasury Action to Bolster Secondary Market for Small ... MarketWatch
Feds hope to unfreeze SBA, consumer lending Bizjournals.com
Wisconsin State Journal - FOXBusiness
all 123 news articles

Straits Times
Government plans new credit, mortgage programs
O Jornal, MA - 27 minutes ago
The Fed program for consumer debt will lend up to $200 billion to the holders of securities backed by various types of consumer loans such as credit cards, ...
Lenders Become Proactive New York Times
Mortgage relief gets stuck Cape Cod Times
Partisan blame for financial crisis not so easily affixed Las Vegas Sun
TheStreet.com - Washington Post
all 2,138 news articles

New York Times
Turning Around the Idea of Student Loans
New York Times, United States - 11 hours ago
“This is a five-year loan, and that helps ensure a certain amount of longevity for this project.” Justin said he first became interested in poverty issues ...

Ottawa Citizen
The Fed boosted emergency loans to banks and firms
The Associated Press - Nov 28, 2008
The report also said investment firms borrowed an average of $52.4 billion from the Fed's emergency loan program over the week ending Wednesday, ...
Fed Commercial Paper Holdings Rise to $295.1 Billion (Update2) Bloomberg
Bailout Report Card--A Failing Grade and a Frightening Outlook for ... The Cutting Edge
"Oops, We Meant $7 TRILLION!" What Hank and Ben Are Up to and How ... OpEdNews
Examiner.com - CNNMoney.com
all 454 news articles

Student debt levels portend rising loan default rates
Indianapolis Star, United States - 8 hours ago
They were aiming to win big so they could pay off their student loans. "If you don't try, you can't win," said Brown, a 26-year-old marketing consultant. ...

Hedge Fund Manager Hendry Bets on Deflation With UK War Loans
Bloomberg - 2 hours ago
The “Jolly Long Bond,” as Hendry calls the war loan, will be the most reactive to deflation because not having a maturity means it has long duration, ...

Loss of college loans lender may have little effect
Spartanburg Herald Journal (subscription), SC - 3 hours ago
The financial aid director for Spartanburg Community College stressed that these types of supplemental loans are separate from the Stafford Federal Student ...

Detroit's Big 3 Will Try Again To Get Federal Loans
NPR - 4 hours ago
They're going to try, again, to convince Congress to give them federal loans. They say they need the money to avoid an industry collapse. ...

Boston Globe
Problem-solver
Boston Globe, United States - 8 hours ago
Bair's plan to systematically modify 2.2 million loans for defaulting borrowers has drawn widespread support - except from the Bush White House. ...
Avoiding your own mortgage collapse The News Journal
Efforts are under way to head off foreclosure Philadelphia Inquirer
all 4 news articles

Resources