Financing for first-time car buyers with no credit history


Financing for first-time car buyers with no credit history


As a first-time car buyer with no credit or bad credit,* you might feel up against it.

That’s understandable.

Consumers with long and strong credit histories generally stand a better chance of getting financing from an auto lender, and may enjoy better terms and a greater choice of vehicles.

But take heart.

Many lenders are set up to work with first-time buyers, and guess what? Many of those consumers have limited or bad credit histories.

When you’re in one of these situations, there are a number of steps that may be taken to make the whole process easier.


7 Tips for first-time car buyers with limited or bad credit histories

  1. Look for inaccuracies and errors in your credit reports that might affect access to credit. Even if you think you have no credit history, it’s worth checking what may be there. You can request a free copy of your credit report every 12 months at
  2. Budget, with tools like auto loan calculators, to estimate what you can afford to pay for a car and how different financing terms affect what you may pay.
  3. down payment will reduce what you need to borrow and may also reduce what you pay in finance charges over the course of the loan. It could be a requirement from some lenders.
  4. Adding a co-applicant or cosigner to an application will often boost the chances of approval and, if approved, improve the loan terms, such as lowering APR.
  5. Can you get a car loan with no credit, and no cosigner or co-applicant? Depending on your particular circumstances and the lender, it may be possible to get approved, but applying for a joint loan or with a cosigner will typically better your chances.
  6. Think about applying with different auto lenders. If approved, compare the terms offered. You may want to apply for a preapproved auto loan with a lender like RoadLoans, that enables customers to know the terms of their loans before visiting the dealership.
  7. Another option is to establish credit before seeking a car loan. The Consumer Financial Protection Bureau recommends steps such as getting a store card or secured credit card, or being added as an authorized user on a credit card, in order to start a credit history. And habits like making payments on time, not getting too close to your credit limit (keep within 30 percent on your total credit limit), and only applying for credit you need will help get and keep a good score.


Easy financing for first-time buyers

Buying a car for the first time with no credit history or poor credit is not ideal, but it’s also not uncommon. With a few tips now under your belt, you may save yourself some valuable time and money.

Consider applying for financing with RoadLoans, the direct-lending platform of Santander Consumer USA, which offers a fast, no-hassle process to empower shoppers.

It takes just a few minutes to apply securely online and we provide instant decisions. Each approved applicant receives multiple loan offers tailored to their needs so they can select the best option and go shop for a car the same day. If approved, just download the loan packet and visit the dealership, loan voucher in hand, already knowing just what you have to spend on your new vehicle.


Where to shop for a quality vehicle

You’ll see a preferred dealership nearby recommended in your loan packet and you can also search for dealers using our dealer locator. We work with 14,000 trusted auto dealerships across the U.S. that are able to show you select, high quality vehicles, so you can shop for your first car with confidence.

Apply for a car loan online.


* “Bad” or “Poor” credit generally is considered a FICO score around 600 and below by sources including the Consumer Federation of America and National Credit Reporting Association (reported by the Associated Press),,, Investopedia, and others. The Congressional Budget Office identifies a FICO score of 620 as the “cutoff” for prime loans. FICO scores are not the sole factor in lending decisions by and Santander Consumer USA.


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