How Can I Buy a Car with No Credit?
How can you buy a car with no credit or poor credit? It’s often hard, but it’s seldom impossible when you:
You can even go through a Buy Here Pay Here dealership for easy approval and a host of incentives.
Before You Buy
When you’re working without credit or with a poor credit rating, it helps to do as the Boy Scouts do and be prepared. That means:
- Working on Your Credit Score: Make sure you pay off what you can, dispute any credit report errors, and add any positive information to your credit report. Pay everything on time, and don’t take on any other major credit obligations before trying to buy.
- Saving: If possible, save up for a decent down payment. This acts as collateral and reduces your monthly payments, so lenders will view you as less of a credit risk.
When You Buy
When it comes to the buying process, thing’s often get a little trickier. You can help yourself out by:
- Knowing Your Budget: How much money is left over after paying bills each month? That’s probably your budget for a new car. Don’t bite off more than you can chew.
- Get Pre-Approved: Getting a pre-approved loan before you start can save plenty of inconvenience later.
- Avoid Extras: Shopping with bad credit generally means not being approved for a higher loan amount, so you may need to sacrifice some creature comforts.
If You Get Turned Down for Credit
It isn’t rare for all the points above to fail you, especially if you don’t have much time to prepare. In such cases, a Buy Here Pay Here (BHPH) arrangement can help. These low down payment car dealerships provide financing themselves instead of arranging it through a third-party, so:
- Getting approved is often easy, regardless of credit history.
- You have a chance to build (or rebuild) your credit.
- Incentives are provided to encourage an ongoing relationship.
With CarHop, you’ll even receive: