If you have little or no credit and have been shopping for a vehicle, this conversation may sound familiar:

“Hi, Dad? So listen, I really need to get a new car. Well, not ‘new’ new, just new to me. I found a used vehicle, but I didn’t no credit to speak of.es, I know I should have had a credit card in college and learned to be responsible with money. I know daddy, but I found a car and they said I needed a co-signer … Why are you laughing? So you’re not going to help me? Agreed. Bye Dad.”

A co-signer on a car loan

Did your parents, relative or close friend laugh at you when you asked if they would co-sign your car loan (like mine)? Co-signing is a big deal and involves real trust. When you don’t have a credit history that a lender could base an auto loan approval on, it’s also understandable that finding a co-signer is difficult.

A co-signer is basically a backup payment guarantee option with good credit. Your credit score is not high enough to be considered for a loan, but his is. A the co-signer is someone – usually someone close to you – who puts their credit on the line for you.

The problem is that once someone ties their credit to yours through an auto loan, it’s not just you who pays the price if you mess up and miss a payment or two – or worse. Your co-signer’s credit is now tied to your loan, so their credit is impacted just like yours.

Do you know how much a missed car loan payment can affect your credit? Here’s the real kicker: a missed payment is more detrimental to your co-signer’s good credit than it is to your already low credit score, because the better your credit, the more it can drop following a negative event. .

Obtain a car loan without credit or co-signer

So how do you get the vehicle you desperately need when you have no credit and no co-signer? The answer is a subprime lender or dealer buy here pay here. Let’s take a closer look at these options:

1. Get a loan from a subprime lender: When you have poor credit, getting an auto loan is not impossible as long as you work with a lender who can help. Not all lenders are willing to work with people who have little or no credit. Those who do are called subprime lenders and work through specialist finance brokers. That means you can’t sit down with them face to face and get pre-approved, you have to apply indirectly through one of these dealerships. These lenders look beyond your credit score to approve you for a car loan. They look at factors such as income, employment, residency, and down payment, to name a few.

Auto Express Credit Tip: If you need an auto loan with no credit or co-signers, making a big down payment can help you get approved. Try to use a down payment of 20% or more of the selling price of the vehicle.

2. Find a loan through a Buy Here Pay Here dealership: When you go through a one-stop car lot, the dealers are the lenders. So they often don’t rely on your credit score to approve you. These dealerships are more concerned with whether or not you can make your payments, and they use your earnings and down payment to get you into a vehicle. The downside of buying here, paying the dealers here is that you’re likely to get a high interest rate and they only carry used cars on their lots.

Auto Express Credit Tip: When you have no credit and no co-signer, now is not the time to finance the vehicle of your dreams. Focus on getting a reliable model that meets your needs. Don’t forget to look at safety ratings, reliability ratings and fuel economy. These factors all play a part in the cost of owning a car.

Find a local car dealership

Here has Auto Express Credit, we understand how difficult it can be to get a vehicle when your credit seems to be against you. Don’t give up, there are dealerships that work with lending resources that can get you the car you need.

If you don’t know where to start, we can help. By filling out our easy, free and non-binding form car loan application form, you can start the process of connecting with a local dealer. Wait no more, start your car buying journey now!