How to Get a No Guarantor Car Finance

Posted by Frank Gogol

Getting around without your own car can be a hassle. You constantly have to ask for rides or worry about public transportation. Maybe you just started your career and looking to buy your first car. But before you can get your own car, you need to get a car loan.

No matter who you are, getting a loan can be very difficult if your credit score is low. Traditional banks don’t like to lend to people with low credit scores almost as much as they have concerns about lending to foreign nationals. What can you do if you need a car loan but most lenders require you to get a guarantor to sign with you?

Have you heard of no guarantor car financing? Yes, there is credit available even if you don’t have someone to cosign your loan. The rest of this article will explain how it works.

What Is a Guarantor?

A guarantor (more commonly known as a cosigner) is the legal term for someone who accepts responsibility for a loan with the principal signer. The person who applies for a loan is the principal applicant. The person who cosigns the loan offers their creditworthiness to support the principal applicant.

Principal applicants may not have a strong enough credit score and therefore need a guarantor to cosign their credit application. The guarantor basically agrees to cover the cost of the loan if the principal applicant fails to repay it.

A guarantor can be a family member, a friend, and even a colleague. Anyone who trusts you enough to help you apply for credit.

Is There Such a Thing as No Guarantor Car Financing?

There is something like no guarantor car financing. You just need to find a lender who offers you a loan without requiring a cosigner. This may be difficult if you are a foreign national living in the U.S. on a visa. Traditional banks sometimes reject loan applications submitted by visa holders. But, you may still have options that we’ll expand on later.

How to Finance a Car With No Guarantor

A guarantor may be able to help you in some positive ways, but it isn’t always necessary. You simply need to find lenders who help people in your situation. There are companies out there offering loans with no guarantor. The interest rate may be a bit higher than that of traditional banks, but let’s face it, credit that’s a bit more expensive is better than no credit at all.

Online lenders offer loans to people without cosigners, people with low credit scores (or even no score at all), and people with visas as long as they comply with their eligibility criteria. You might even be surprised to find that some online lenders charge cheaper interest rates than some of the car dealerships. Search for the cheapest loan available to you and use that to buy a car.

You can also submit the car you buy as collateral for the loan. This means the lender may take the vehicle as payment if you default on the loan. A secured loan has a cheaper interest rate when compared to an unsecured loan of the same amount. The reason for the cheaper interest rate is the lender has fewer risks if you offer an asset as security for your loan. The chances that the lender will recover the money they are due are much higher with a secured loan.

Lower interest rates lead to cheaper monthly repayments. And cheaper monthly repayments are much easier on your budget.

How to Get a Loan Without Guarantor Through Stilt

Stilt offers no guarantor car financing. With Stilt, you can get a personal loan without a cosigner. You don’t even need a credit score, because there are other ways to determine your creditworthiness. Even immigrants living in the U.S. on a visa can comply with their simple eligibility criteria.

You can borrow up to $25,000 and repay it in monthly installments. Stilt currently offers an APR that starts at 7.99%, with stronger applications getting better loan offers.

This is how it works.


Apply online for the loan amount you need. Submit the required paperwork and submit your application.

Get Started

You’ll receive feedback within 24 hours. Please supply any additional information if required. Soon you’ll get your loan offer and a promissory note. Sign and return that note if you want to accept the loan.

Start Repayment

The loan will be disbursed into your U.S. bank account within 2-3 business days. Set up your repayment method online. An autopay option will help you pay on time every month.

It’s that easy! Now all that is left is for you to go buy the car you need.

5 Ways to Improve Your Chances for Approval on a Loan Without a Guarantor

It is always best to be prepared. So what can you do to increase your chances to get no guarantor car financing? Here are 5 ways to improve your chances for approval.

1. Increase Your Income

It’s great to get a loan, but you need to be able to repay it in monthly installments. Lenders look at your monthly income and expenses to see if you can repay the loan you are applying for. You’ll increase your chances to get a loan if you increase your monthly income. You can prove your monthly income with your paystubs or bank statements.

2. Borrow Less

You may have already decided what car you want and therefore need a specific amount. What if you get rejected for that amount? You should look for a cheaper vehicle and apply for a smaller loan amount. A smaller loan amount will require a cheaper monthly installment. This will likely improve your chances of getting a loan, based on your current income.

3. Keep Looking

You perhaps went to traditional banks and lenders and they may have rejected your applications. Go to smaller institutions like regional banks or online lenders. These types of companies may be better suited to help you.

4. Settle Old Debt

Lenders look at your debt-to-income ratio when deciding whether or not to lend you money. A high debt-to-income ratio lowers the likelihood of you getting a loan. Repay some of your current debt before you apply for new credit. This will lower your ratio and increase your chances to get a loan. It will also increase your credit score when you settle the debt.

5. Pledge Collateral

Collateral is a form of security. You turn a loan into a secured form of credit when you pledge collateral. Loan collateral serves as payment if you default. This may help convince a lender to grant you a loan. In the case of a car loan, you submit the car itself as collateral. A mortgage is also an example of a secured loan because the house bought through the mortgage is the collateral.

Personal Loans
 for Non-U.S. Citizens!

Check Loan Options

Loans for up to $35,000. No Guarantor required. No prepayment penalty.


Life can be so much easier if you have your own car. You aren’t dependent on the reliability of public transportation. You get to decide when and where you go. But what can you do if lenders require you to find a cosigner for your car loan? You can get no guarantor car financing and still be able to buy the car you need!

Read previous post:
How to Get a Loan without Guarantor

Getting a loan is never easy. But for some people, it might be more complicated than for others. This is...