Can You Finance a Car with No Credit?

Man Sitting at Desk Doing Calculations

 

If you need a new car but have poor credit, or want to buy a car for the first time but have no credit, keep reading. Can you finance a car with no credit? Yes, you can! It might be a bit more challenging than it would be if you had good credit, but it’s possible. Learn more about how to finance a car with no credit or bad credit, as well as what credit score is needed for a loan, and more here with Ole Ben Franklin Motors, and contact us if you need a car loan.

Tips for Financing A Car With No Credit

When you finance a car with no credit, you’ll likely need a higher down payment and have to pay a higher interest rate on your loan. Figure out your budget ahead of time, but leave a little wiggle room. Here are some additional tips:

Shop Around

It’s easy to get discouraged thinking that a particular financing option is the only one available to you or that you have limited opportunities because you have no credit. Keep your head up. That’s not always the situation. Ask lots of questions and shop around to see which lender has the most options for you.

Try to Improve Your Credit Score

If you have poor credit, try to improve it. Work out a payment plan with your current creditors, even if your behind on payments. Try to pay off your outstanding debts. One method to build credit is to use your credit card on small purchases and immediately pay it off.

Apply for Loans All in a Short Period

When you are applying for car financing, your credit score will take a hit. Do your best to keep all of your loan applications within 14 days to limit the potential harm to your credit score.

Don’t Feel Like You Must Accept The First Offer

The first offer is probably not the only one you’ll receive. Many dealerships, like Ole Ben Franklin Motors near Farragut,  use multiple lenders. So if you think there’s a good chance you could get a better offer, keep trying.

Be Prepared To Pay Higher Costs

Once you’ve chosen your next new vehicle for your Sevierville commute, you’ll probably have to pay higher interest rates and make a larger down payment. Try to prepare for yourself and plan accordingly.

Apply for a Car Loan at Ole Ben Franklin Motors

The Ole Ben Franklin Motors finance team makes financing a car with no credit, or bad credit, as hassle-free as possible. Ask about our no credit and bad credit finance options, leasing options, and more. Soon you’ll be driving around Seymour in your new ride! You can start the process today by applying for financing online to get pre-approved. Contact us or stop in at our Knoxville dealership with any questions. We’re here for you!

 

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