Can I get car finance with no credit history?
You're still eligible to apply for car finance if you don’t have a credit history, but that doesn’t mean you’ll definitely be accepted
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When applying for car finance, lenders like to see a credit report with evidence that you're committed to repaying your debts. This lets them know that you will keep on top of your repayments.
It’s usually harder to get car finance with no credit history, and you may end up with higher interest rates or need to use a lender that specialises in no credit history car finance.
How to get car finance with no credit history
To help your chances of getting approved for car finance with no credit history, there are a few things you might want to do.
Use a guarantor for your car finance
Some finance companies allow you to add a guarantor to your finance agreement, and this could improve your chances of getting accepted. A guarantor will be responsible for repaying your debt if you can't pay it yourself, so this will need to be someone you can trust.
You should also consider that not paying your finance and leaving that responsibility with your guarantor could put a strain on your relationship – consider whether you can keep up with payments before going ahead.
Choose a different way to fund your car
If you’re struggling to get accepted for finance due to your lack of credit history, it might be worth considering another way to pay for your car.
You might find that your bank is more willing to lend you the money to purchase the vehicle, or you could try offering a larger deposit to the car finance company to see if this makes a difference.
Find a lender that works with no credit cases
Some lenders work with borrowers who have little or no credit history, so you might want to try this route if you’re struggling to get accepted.
It’s always a good idea to do some research on these lenders and get a couple of quotes before going ahead with one, as you want to make sure you're getting the best rates. Take a look at things like their terms and conditions, so you’re 100% sure they’re the right lender for your needs.
How can I get guaranteed car finance with bad credit?
There’s no such thing as guaranteed car finance, even if you have an excellent credit score.
All applicants have different circumstances, so each application is reviewed and approved or rejected on a case-by-case basis.
All finance providers have their own criteria that applicants must fit in order to be approved for the loan. Without carrying out initial checks, the provider can’t guarantee you any kind of finance.
Can I get car finance without a credit check?
Lenders won't offer car finance without credit checks to protect both themselves and whoever is applying. Some may offer variations of the credit check, however.
Where can I finance a car with bad credit near me?
Financing a car with bad credit or no credit at all doesn’t have to be a stressful process – plenty of online dealerships can help you secure your finance car, and local dealers might be able to help out too.
It’s a good idea to do some research before going ahead and comparing a few lenders to see where you can get the best deal.
You might also want to spend some time building up your credit rating to improve your chances of being accepted.