Improve Your Credit To Buy A Car

Today, credit is essential for most big financial transactions or purchases, like buying a car. However, it is still possible to buy a car with no credit, or with a little bit of credit. Here are a few ways you can do it.

Save Up and Buy with Cash

You can buy the car by saving up enough to pay in cash. This will prevent the need for financing or taking out a loan for the car. Therefore, you do not have to worry about making payments that you may not afford to make every month. Your credit will not be able to take a hit or be further damaged if you pay for the car in cash.


You can still buy a car with bad credit by financing. The rate will be incredibly high due to your lack of credit, but it is still an option. However, you should always shop around to ensure that you find the best financing option available for you. If you are a member of a credit union, they may be able to help you get a better financing rate. It is always in your best interest to look for the best deal, especially when buying a car with no credit. If you do choose this option, it is best to keep in mind how much you can pay without stretching yourself too thin financially. This way you do not risk having the car repossessed, which can cost you more money and damage your credit further.

Get a Cosigner

Another option is to get a cosigner for your auto loan. The person can be anyone who has good credit, and is a family member or spouse. The car dealership will be more likely to do business with you if they have options for ensuring they are paid. Your cosigner's credit will give them a way to gauge what type of debtor you are by association to your cosigner, and develop an appropriate rate.

Get Help from a Dealer

A good last option available when buying a car with no credit is to buy from a "buy here, pay here" kind of dealership. This type of dealership usually takes out the car's auto loan themselves at a high rate. They are more willing to sell to you, even without credit, as long as you pay the required payments to them at the dealership. It may be troublesome, but as long as you have your own car, it is worth it.