Kasey and Green Light Auto Credit did a fantastic job in helping us a great car!
Although it’s more difficult to finance a car with no credit vs. good credit, it’s not an impossible feat for St. Louis drivers! Is a no-credit car loan the right option for you? Or, are you considering financing a car with bad credit? Green Light Auto Credit can help you decide which route is best for you, based on your credit and budget. Review our handy guide below to learn more about how car financing works when your credit needs work.
If you’re financing a car with bad credit or no credit history, keep in mind that your down payment will probably be higher than usual. Additionally, your auto loan will likely have a higher interest rate. Before you move forward with applying for financing, take some time to do the following in preparation:
If you have bad credit or no credit, you may be wondering, “How does a cosigner affect an auto loan?” It depends — a cosigner can affect a loan tremendously or not at all. When choosing a cosigner, it’s recommended to stick within your closest circle, i.e. your family and close friends. You’ll also want to be careful who you ask; your cosigner will need to have good credit and a steady income. If they don’t, the chances of their signature leading to an approval for you is minimal.
It’s also important to consider the potential affect cosigning with a family member or friend could have on your relationship. If you’re unable to make payments for whatever reason, the resposbility of the loan will fall to them. Both of your credit scores will be on the line. So, it’s essential that they know and understand the risks before agreeing to cosign for you. There’s also the possibilty you’ll need to remove your cosigner down the road, so keep that in mind as well.
The finance team at Green Light Auto Credit makes financing a car with no credit or bad credit easier than you might think. We offer plenty of options to Florissant and St. Charles drivers who need help financing a car with bad credit. Contact us to learn more about your next steps or apply for financing online.