How to Finance a Car with No Credit

If you’re a first-time car shopper in San Antonio, you may be wondering, “Can I finance a car with no credit?” Yes, you can! Financing a car with no credit is usually a bit more difficult than financing with established credit, but it can be easier than financing a car with bad credit. Car finance options are available to drivers from all walks of life here at Aston Martin Houston’s finance center. Below, you’ll find more information about how to improve your chances of getting approved for financing with no credit.

Financing a Car with No Credit: What to Keep in Mind

If you’re financing a car with limited credit history, remember that your down payment may be more than average, because the lender has no past information with which to determine your risk level as a borrower. The interest rates may also be higher. However, following these tips can give you some leverage when you apply for an auto loan:

• • Ask Questions: You don’t have to settle for the first financing option that comes your way. Ask questions about what else is available to you and how you can take advantage of any first-time car buyer programs.

• Know Your Credit Score: This is a given, but worthy of a mention. Before applying for any type of loan or line of credit, it’s important to know your credit score and history. If you have no credit, you know your credit needs work, but it’s always smart to check your credit report for incorrect information. 

• • Plan Your Applications: When you apply for an auto loan, restrict your loan applications to a 14-day period to prevent unnecessary dings to your credit score.
  • Keep Your Options Open. Many dealerships work with a network of lenders to help their customers find the best possible rates and terms. Don’t feel pressured to accept the first offer you receive.
  • Use a Cosigner: If you have a family member or close friend who has a good credit score and a steady income, and they’re willing to cosign your auto loan, their signature can greatly improve your chances of being approved.

• Consider Leasing: Typically, it’s slightly more difficult for a driver with no credit or not-so-great credit to get a lease, but it’s worthwhile to learn more about your leasing options. Leasing usually requires a lower down payment and a much lower monthly payments. 

Learn More About Your Financing Options at Aston Martin Houston!

Financing a car with no credit is easier when you have the experts in your corner. The finance team at Aston Martin Houston can answer your questions and provide car-buying advice along the way, including how to refinance your loan in the future, after you’ve built up some positive credit. Contact us to schedule a test drive, or start the process online by completing our secure credit application.