Can You Finance a Car with No Credit?

Can You Finance a Car with No Credit?

Plenty of Provo drivers are looking to purchase a car but maybe worried that their credit score is holding them back. If you have a poor credit score – or no credit history at all – don’t worry too much about buying a new car. Financing a car with no credit is absolutely possible, though it’s more complicated than if you have a well-established credit history. The finance team at Orem Toyota has everything you need to know about financing a car with bad credit or no credit, including some strategies to be aware of. Check it out!

Tips for Financing a Car With No Credit or a Low Credit Score

If you’re a Lehi-area driver with poor or no credit, there are some important things to keep in mind. First of all, your down payment and interest rates may be higher than the average driver, so make up a realistic budget with some room for unexpected expenses. Check out these additional tips for financing a car with no credit:

Don’t Assume That You Won’t be Approved for a Loan

If you have a low credit score or no credit history, you might think that you only have one or two financing options. However, this may not necessarily be the case. When you apply for a loan, ask about your available options.

Try to Improve Your Credit Score

The best solution to a low credit score is to build it up over time. There are a few ways to improve your credit score: paying off outstanding debts, making up a payment plan, and making small purchases with your credit card that you can easily pay off.

Be Strategic When Apply for Loans

Applying for financing can cause your credit score to take a hit, so be sure to apply for all your loans within 14 days.

Don’t Be Too Quick to Accept the First Offer

Don’t feel like you have to accept the first offer you’re given just because you have to work on your credit score. If you feel like you’re in a position to shop around at other dealerships so you can get a better offer, go for it!

Be Prepared for Any Added Costs

As we discussed above, financing a car with bad credit can lead to higher interest rates and/or a larger down payment, so be sure to fit this into your budget.

Apply for an Auto Loan at Orem Toyota

If you have any questions about the auto loan process or just want more information, contact our office near Draper anytime! You can apply for financing right from our website if you’re ready to start the process of buying a new car. And be sure to check out our online inventory of new Toyota vehicles to see what we have available!