Maybe you've just graduated from college and need a vehicle to commute to your first full-time job. Or maybe a change in your marital situation demands that you buy a vehicle on your own. These are just some of the many reasons that you have no credit and are buying a car for the first time.

You may feel that it would be impossible for you to obtain financing given your lack of credit history. But we at the Glockner Family of Dealerships put people like you into cars every day. And we'd like to offer you some advice on how to make that happen.

Cosigners Can Help

One of the most convenient ways for you to get a loan if you have no credit is to get a cosigner who has excellent credit. This person will be able to vouch for you because he or she will then become responsible for the loan if you do not meet your financial obligations. Some of the people that you can approach for this responsibility might be a spouse, parent, or close friend.

A Big Down Payment

One of the reasons that lenders are reluctant to finance somebody without any credit is that you have no history of responsibility with money. You may decide to walk away from the loan, leaving the lender with the loss of income and the time, effort, and expense it takes to repossess the car.

Making a big down payment will address that concern. Because you put money into the purchase, you are probably not going to abandon the loan because you will lose what you put in. Lenders will then be more likely to take a risk on you. In addition, putting in a big down payment lowers the amount of your car loan, which in turn makes your monthly payments and your total expense lower.


Until you try to get a loan, your ideas about how your lack of credit affects your chances amount to pure speculation. Fortunately, you can determine if you qualify for a loan without any obligation or risk on your part by getting pre-approved.

This process involves filling out our online credit form. We will then analyze your application and tell you exactly the loan that you will qualify for. Your chances are quite good because we are in the business of selling cars and not in the business of making money off the financing.

Buy Here Pay Here

One of the reasons that you're more likely to obtain a loan with us even without the credit is that we are a Buy Here Pay Here dealer. You can do anything involving a vehicle at our dealership from finding your best purchase, obtaining financing, and having your vehicle serviced. This gives us plenty of leeway in structuring a payment plan that works with your situation.

If you're a first-time buyer, we typically won't check your credit but you may need to verify your residence and proof of income. You'll also need a down payment. However, keep in mind that we may charge you a higher-than-normal interest rate because of the risk we entail in financing someone with no credit.

We can then show you vehicles that fall within your price range. Because we carry pre-owned as well as new models, we can offer you a car even if your approved loan is low.

Building Credit

One other option if you have no credit is to start building it many months or up to a year in advance of the date that you plan to buy a vehicle. You want the major credit bureaus to begin compiling a record of your financial habits that prove you can be trusted with an auto loan.

You can start by getting a secured credit card. This is similar to an ordinary credit card, but your purchases are backed by a cash deposit that you put in upfront. This deposit is usually equal to your credit limit with minimums as low as $200.

You can then use this card like any other credit card. But it's important that you make monthly payments on time or a little before the due date. Your payment history accounts for over a third of your credit score, which is a number that lenders look at to determine the interest rate and payment terms that they offer you.