How Do I Get an Auto Loan with No Credit [and No Cosigner]?

Updated on April 9, 2024

You are defined by your credit score by most lenders in the United States, and with bad credit or no credit, you can be at a disadvantage when you need something that requires a loan.

One typical suggestion for those to overcome their credit score is find someone with a better credit history to act as a cosigner. This may not be an option, however.

It’s difficult to find someone you can trust, who is willing to vouch for you, especially if you are a young person surrounded by people with the same lack of experience as you or an immigrant who has not had the time to network with people who can act as cosigners.

Do not think that is the only option. This guide will provide you some insight into how you can get an auto loan with no credit and no cosigner:

Can you get an auto loan with no credit and no cosigner?

It is possible to get an auto loan with no credit history and no cosigner — even though that situation can seem like two strikes against you in an already stacked deck.

5 Options for a Car Loan without Cosigner


One of the largest used car retailers in the US that provides financing options for people with no credit history.

  • Rating: 4.5 stars
  • Interest Rate: Varies, can be high for no credit buyers
  • Loan Amount: Up to $35,000
  • Website:


Description: An online marketplace for car loans that partners with dealerships and lenders to get financing for people with minimal or no credit history.

  • Rating: 5 stars
  • Interest Rate: Varies depending on factors like income and down payment
  • Loan Amount: Not specified
  • Website:


Description: An online used car retailer that approves people with no FICO credit score and provides financing options for them.

  • Rating: 4 stars
  • Interest Rate: Varies but generally high
  • Loan Amount: Varies
  • Website:

Description: An online car financing marketplace that matches borrowers to lenders willing to finance based on factors besides credit score.

  • Rating: 4 stars
  • Interest Rate: Varies greatly depending on lender
  • Loan Amount: Max reported to be $100k
  • Website:


Specializes in bad credit auto loans but also provides auto financing for people with no credit history.

  • Rating: 4.0
  • Interest Rate: Varies but can charge very high rates
  • Loan Amount: Up to $100,000
  • Website:

Where can you get a car loan with no credit and no cosigner?

It’s not easy getting an auto loan with no credit or cosigner. They are validation A and B for people looking to take out a loan. Banks may dismiss you, but there are lenders competing with banks who are willing to take a broader, more holistic look at your application.

1. Online Lenders

Online lenders are something people don’t typically consider when thinking about getting an auto loan. If a bank is the grocery store, online lending is the flea market. For many, it feels safer to trust a bank than it does an online company. Furthermore, banks are more commonly associated with auto loans and have been around longer.

Although banks do have a better reputation, there are many professional online lenders with superior service to banks to compete with them. They are willing to consider factors beyond your credit score and a cosigner. is one such example. Stilt designs its services for immigrants and young people with bad credit or no credit. By having that focus, looks to provide tailored policies for dealing with specific situations faced by immigrants and young people. by using a broader metric system for determining if an applicant is safe to lend to.

If you are an ambitious and enterprising young person or immigrant with good prospects than Stilt is willing to provide auto loans at reasonable interest rates.

2. Banks

There may be some be some banks that are willing to accommodate you, but not a whole lot. Banks have a broader area of focus and because of that, the way they approve loans is more standardized.

If you don’t have a good credit score, then they ask for a cosigner, and if you don’t have cosigner, they turn you away or strap you with extremely high-interest rates.

It’s worth doing your research because there is always a human element, and you may get a sympathetic bank representative who is willing to look at a broader profile rather than reducing you to your credit score.

3. Credit Unions

Credit unions are less conventional than traditional banks, but if you have no credit history and no cosigner, the fact that credit unions are built to be understanding collectives for certain demographics works in your favor. An international student of a certain ethnicity may find a credit union whose membership is made up of other members of that ethnicity.

That means the particulars of an immigrant’s present circumstances are likely to be understood on a deeper level than if an immigrant walks into their nearest bank. Credit unions tend to have a more nuanced understanding of who they represent, which may be able to overcome no credit and no cosigner.

One problem is that even though credit unions may grant you a loan, their interest rates tend to be high.

What are the drawbacks to not having credit or a cosigner?

Not having a credit score or a cosigner are definitely two major strikes against you in the financial world.

Having no credit means you have no history that a lender can judge you by. Knowing whether you did or did not pay off your loans in the past informs a lender as to how you will handle the loan they give you.

Just as you need a character reference to get a job, a cosigner acts as a financial reference for you to get a loan. They take on responsibility for the loan should you default, and their good credit score counterbalances your lack of credit experience.

You can overcome these strikes, but there will be obstacles nonetheless. They will lead to:

1. Higher Rates

If a lender like a bank, sees that you have no credit and no cosigner, their first instinct will be to turn you down. Hammering out the terms on a loan is a negotiation; you may have things working against like no credit or cosigner, and things working for you, like steady employment and income.

Instead of turning you down, they may give you a loan with steep interest rates. This can be like stepping into quicksand. Every payment increases at a rapid rate until you auto loan is well over what the vehicle was worth.

2. Lower Amounts

Another way you may be penalized by having no credit score or cosigner is by the lender offering you a smaller auto loan. Cars are big purchases, and if you are adjusting to a new place, you may not have the savings to make a deposit. The bigger allotted amount they give you, the more money you can save.

Not having a credit score and not having a cosigner can just be by-products of your circumstance as a young person or immigrant, not cold hard determinants of whether you will pay back your loan.

3. Fewer Options

You may feel constricted or limited by not having a credit history or a cosigner —that getting an auto loan is impossible. Most people will tell you that banks and credit unions will turn you away because of that.

That may be true, but you are not without hope. There are options for people without a credit score and cosigner.

Frequently Asked Questions (FAQ)

Can I get an auto loan with no credit and no cosigner?

Yes, it’s possible to get an auto loan with no credit and no cosigner, but it may be more challenging. Lenders typically view applicants without credit history as higher risk.

What are the challenges of obtaining an auto loan with no credit and no cosigner?

The main challenges include higher interest rates, a requirement for a larger down payment, and limited loan options. Lenders may also require proof of stable income or employment.

How can I improve my chances of getting an auto loan with no credit?

To improve your chances:

  1. Save for a larger down payment.
  2. Provide proof of a stable job and income.
  3. Look for lenders or dealerships that specialize in no-credit financing.
  4. Consider a more affordable, used vehicle to reduce the loan amount.

Are there specific lenders that offer auto loans to people with no credit?

Yes, some lenders and dealerships specialize in auto loans for individuals with no credit history. These are often referred to as “subprime” loans.

What kind of interest rates can I expect with no credit?

Interest rates for no-credit auto loans are typically higher than average, reflecting the increased risk to the lender. Rates can vary widely depending on the lender and other factors like down payment size and income stability.

Can I use a trade-in as a down payment for an auto loan?

Yes, if you own a vehicle, you can often use it as a trade-in towards a new car, which can count as all or part of your down payment.

How important is proof of income for an auto loan with no credit?

Proof of stable income is very important for obtaining an auto loan without credit, as it reassures lenders that you have the means to make your loan payments.

What should I be cautious of when seeking an auto loan with no credit?

Be cautious of extremely high-interest rates and unfavorable loan terms. Always read the contract carefully and understand all the terms and conditions before signing.

Is it better to wait and build credit before applying for an auto loan?

If possible, it might be better to build your credit first. Even a short period of building credit can improve loan terms and interest rates.

How can I start building credit to improve my auto loan options in the future?

To start building credit, consider applying for a secured credit card, becoming an authorized user on someone else’s credit card, or using a credit-builder loan. Always pay on time and keep balances low.

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Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

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