It’s possible to get a car loan without a cosigner, even if with bad credit or no credit score. We reviewed over 100 car loan providers before creating this list of providers you might qualify with. It includes options for all credit types, first-time buyers and non-residents.
4 loans to buy a car with no cosigner
While these aren’t all strictly auto loans, these options don’t requirer a cosigner and consider factors other than your credit rating.
Provider
Starting APR
Best for …
PenFed
5.19%
People looking for low rates
Stilt
7.49% to 25.99%
People with no credit score but healthy spending habits, including immigrants
Yes, you can get a car loan without a cosigner. However, your interest rate — and the amount you can borrow — will vary depending on your credit history and financial situation. Lenders prefer borrowers who are low risk, so if you don’t have the best credit, other aspects of your application need to be strong before you apply. Things like a consistent income and a down payment are signals to a lender that you can repay your loan.
You can find a car loan that doesn’t require a cosigner at a bank, credit union, online lender or dealership — but which is best for you will depend on your credit.
Those with bad or no credit may want to turn to online lenders and dealerships first. While borrowers with good to excellent credit could find more competitive rates at a bank or credit union.
How do I get a no-cosigner car loan with bad credit?
If you have bad credit, your options for finding a car loan without a cosigner are more limited. Some online lenders specialize in car loans for borrowers with bad credit. And there are buy here, pay here (BHPH) dealerships that offer financing opportunities to borrowers who don’t meet a bank’s strict requirements.
These typically come with higher rates — usually in the double digits — since you pose more of a perceived risk to the lender. And you’ll also want to watch out for car scams like yo-yo financing and other tactics less-reputable lenders use to trick you into spending more.
How do I get a no-cosigner car loan with no credit?
If you don’t have credit or a cosigner, you may face the same limited options as a buyer with bad credit. This is because a lender can’t judge your ability to pay back the loan, making you more of a perceived risk than someone with even a small credit history.
However, there are still car loan options available for borrowers with no credit. It can help to have a big down payment and regular employment if you want to go through a bank or credit union. Otherwise, you might have better luck with an online lender or dealership.
First-time buyer car loans with no cosigner
You don’t necessarily need a cosigner if it’s your first time buying a car — especially if you have good credit. But if you haven’t had a chance to build your credit history, you’ll need to work with a provider that looks at other aspects of your finances like Stilt. College students might also want to consider lenders like Boro, which look at your grades and major instead of your credit score and income.
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What are the requirements to get a car loan without a cosigner?
While requirements for a car loan without a cosigner vary by lender, you’ll likely have a better chance of getting approved if you meet the following criteria:
Steady source of income
Large down payment saved up
Fair credit
Full coverage car insurance
US citizen or permanent resident
At least 18 years old
6 ways to increase your chances of approval
When you’re looking for a good deal on a car loan without a cosigner, keep these tips in mind to help your search.
Build your credit score. Taking the time to build your credit score before applying for a car loan will help you score a lower rate or more competitive terms. You can build your score by spending carefully with credit cards or making timely repayments on other loans.
Save up for a higher down payment. The bigger your down payment, the less you’ll need to borrow. This means you won’t need to finance as much of your vehicle, which makes you less of a risk to a potential lender.
Increase your income. Getting a second job or requesting more shifts with your current employer can be a good way to save up for that big down payment. It also shows lenders you’re serious about paying back your loan, signaling that you’re a trustworthy borrower even if your credit isn’t the best.
Pay down your current debts. If your debt-to-income (DTI) ratio is too high, a lender will likely consider your other financial obligations as a risk. Because of this, you may want to focus on paying off your debts and improving your credit utilization ratio before applying.
Compare multiple lenders. Understanding your options is critical when it comes to getting a competitive rate, even without a cosigner. Most credit bureaus count multiple car loan applications as one hard pull on your report — provided you apply within a certain period of time. Use this to your advantage and compare as many lenders as possible before making a final decision.
Find a less expensive car. If you don’t have a cosigner and can’t make a huge down payment, you may need to find a car that costs less. It means you won’t need to borrow as much, which can make it easier to get approved with bad or no credit.
Bottom line
No matter your credit score, you could find a car loan provider without needing someone to vouch for you. Banks and credit unions often offer low rates to borrowers with good to excellent credit, while those with bad or no credit may want to look into online lenders and dealerships first.
Our answers to common questions about car loans with no cosigner requirement.
Do I need a cosigner if I have good credit?
Borrowers with good credit generally don’t need to apply for a car loan with a cosigner. In fact, you can typically expect a decently low APR when you have good credit, a steady source of income and limited debts — sometimes as low as 2% to 5%.
Lenders want to see cosigners for borrowers who may be higher risk. So if you’ve been building your credit history and don’t have any major red flags — like low income or a lot of debt — you’ll find that a cosigner isn’t necessary.
What credit score is needed to buy a car without a cosigner?
You don’t need to have a credit score to buy a car without a cosigner. In fact, if you have the cash to pay in full, you won’t have to take out a loan or have your credit checked.
You’ll have more options if you have a credit score of at least 670 — what lenders typically consider to be good credit. But there are still financing options for borrowers with credit scores as low as 300.
How much does a cosigner help on auto loans?
How much a cosigner helps depends on the lender and your personal finances. A cosigner can help you qualify for a larger loan amount, since lenders typically consider your combined incomes.
They can also help you qualify for a lower rate if their credit score is higher than yours. In some cases, they can even help you meet a lender’s minimum credit requirements if your score doesn’t make the cut.
Can I get a car loan without a cosigner if I’m 18?
Maybe. There are lenders that accept 18-year-old borrowers who don’t have a cosigner. However, you may have to settle for less-than-optimal rates due to your limited credit history.
Will I be able to get a car loan without a cosigner as a college student?
Lenders treat college students like any other borrower. There are car loans specifically to students — even if you don’t have a cosigner. But you’ll need to prove you have a steady source of income and can afford to make repayments to qualify.
Can I get a car loan without a cosigner if I’m not a US citizen?
It depends on your residency status. In most cases, you’ll need to have a credit history, down payment saved up and a Social Security number to qualify. Otherwise, you may find that a lender is unwilling or unable to approve your application if you don’t have a US citizen to act as your cosigner.
Will I need a cosigner to refinance my car loan?
It depends on your credit history and financial situation. If you have good to excellent credit — or at least have a history of on-time repayments for your car loan — you may not need a cosigner to refinance. But if you have a low credit score or income, refinancing a car loan without a cosigner may be more difficult. In this case, you may want to increase your credit score and income before applying.
Kellye Guinan is a freelance editor and writer, specializing in consumer lending. Her writing and analysis has been featured on Bankrate, MSN and MediaFeed. She holds degrees in anthropology and German language and literature from Middle Tennessee State University.
If you’re in the market for a car don’t miss out on this guide to buy a car, get all the info you need and a range of loans to help you get into your car sooner.
Thanks for your comment and I hope you are doing well.
You might need a co-signer when applying for a car loan from a dealership if you cannot qualify based solely on your own income and credit record.
These are certain conditions why a dealership needs a cosigner:
1. You could be 18 years old.
2. If you are a college student
3. You don’t have credit history or have bad credit
4. If you’re not a US citizen
5. You need to refinance your car loan
Regardless of your credit score, you could find a car loan provider without a cosigner however, you will most likely not be able to get a better interest rate if you do not have a strong application.
Hope this helps and feel free to reach out to us again for further assistance.
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why do i need a cosigner at dealership
Hi Jeremy,
Thanks for your comment and I hope you are doing well.
You might need a co-signer when applying for a car loan from a dealership if you cannot qualify based solely on your own income and credit record.
These are certain conditions why a dealership needs a cosigner:
1. You could be 18 years old.
2. If you are a college student
3. You don’t have credit history or have bad credit
4. If you’re not a US citizen
5. You need to refinance your car loan
Regardless of your credit score, you could find a car loan provider without a cosigner however, you will most likely not be able to get a better interest rate if you do not have a strong application.
Hope this helps and feel free to reach out to us again for further assistance.
Cheers,
Nikki