How to Buy a Used Car With No Credit
- 1). Apply for a no credit or a first time buyer loan. Go to a car dealership that offers no credit or low credit loans. You will need to fill out an application and provide proof of steady employment and gross monthly income. Go to auto websites such as Cars Direct, where you can search for used cars and apply online for a no credit loan.
- 2). Get a car loan from the bank with the help of a co-signer. Ask a good friend or family member that has excellent credit and who has confidence in your ability to make good on the loan. Because co-signers put their good credit on the line, make your payments in a timely manner.
- 3). Ask family or friends to loan you the money. Discuss your need for a vehicle with members of your family. Reassure them that you'll pay them back within a timely manner. Loans from family and friends can create stress, especially if there is trouble making payments. All parties should come to a clear agreement on the terms of the loan. Put the loan terms, including when payment is expected each month and how long you have to pay it off, in writing and have all parties sign the agreement. To prevent any family rifts, treat your personal loan as you would a bank loan.
- 4). Buy privately and pay cash. Search the newspaper and online classified ads such as Craigslist to locate used cars for sale by owner.