Can You Finance a Car with No Credit?

We are happy to tell you that yes, you can finance a car with no credit! While it may be more challenging to secure financing, it is not impossible. Cornerstone Auto has the details on no credit car loans and financing a car with bad credit, so you can find a reliable and affordable vehicle that you will love for many years to come.

Financing with Bad or Even No Credit

If you plan on financing a car with no credit near Elk River, remember that you will have a higher down payment than average, and you should also expect to have a higher interest rate. When you plan your budget, you want to make sure that you are not overstretching what you can afford. Additionally, the following tips may be beneficial to you:

• Don’t assume you will be rejected, and don’t be afraid to ask questions. If you do not like the first offer that you are given, it is likely not the only one you will get. Don’t be nervous to ask about a more beneficial option.

• Boost your credit score. If you have less than perfect credit, there are ways to boost your score before making a purchase. Use your credit card to make small purchases and pay it off right away. This is a quick and easy way to improve your credit score.

• 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 to your score.

• Separate price negotiation from financing. Once again, it is not necessary that you accept the first offer. Most dealerships go through multiple lenders.

• Expect higher costs. It’s likely that you will receive higher interest rates, need to make a larger down payment, or both if you have yet to establish credit.

• Don’t forget about leasing. Is leasing right for you? This may be a great alternative to traditional financing. Keep in mind that your lease payments could be higher than the average lease, but it will still be more affordable than purchasing a vehicle.

Apply for a Loan with Cornerstone Auto

At Cornerstone Auto, we strive to take the stress out of obtaining a bad credit car loan. Learn how to get a good interest rate on a car loan and more from our helpful financial officers. Contact us about our bad credit car finance options, leasing options, and more. We can also answer any questions you may have, such as, “Do you need full coverage on a used car?” and “What is MSRP?”. If you would like to begin the approval process from the comfort of home, complete our online application. You can also check out our new vehicle specials to help make your next car even more affordable.