What Credit Score Is Needed To Buy A Car Without A Cosigner?

If you are a first-time automobile buyer with poor credit, you may discover that getting a car loan is difficult. However, while those with less credit history or bad credit might have difficulties qualifying for a vehicle loan, there are alternatives accessible to customers who want to purchase a vehicle without a cosigner and have no credit.

Requirements To Obtain A Vehicle Loan Without A Cosigner

Car loans without a cosigner have varying requirements, depending on the lender. However, if you fulfill the following conditions, you’ll have a better chance of being accepted:

  • Fair credit.
  • A reliable source of income.
  • At least 18 years of age.
  • Substantial down payment saved up.
  • Comprehensive vehicle insurance.
  • Permanent US resident or US citizen.

Strategies To Boost Your Chances Of Approval

Keep these suggestions in mind when locating a reasonable automobile loan without a cosigner.

  • Improve Your Credit Score: Taking your time to improve your credit score before applying for a vehicle loan may help you obtain a lower interest rate or more attractive financing terms. You can raise your credit score by managing your finances carefully and on time.
  • Save High For A Larger Down Payment: The larger your down payment, the less you will need to borrow. It implies that you won’t have to finance as much of your car, making you a lesser risk to potential lenders.
  • Boost Your Income: Obtaining a second job or asking for more shifts from your current employer might help you save up for that hefty down payment. It also demonstrates to lenders that you are serious about repaying your loan, regardless of your credit score.
  • Reduce Your Existing Debts: A lender will consider your other financial obligations a risk if your debt-to-income ratio is excessively high. As a result, you may wish to prioritize reducing your debts and increasing your credit utilization ratio before applying.
  • Compare Numerous Lenders: Even if you don’t have a cosigner, understanding your alternatives is essential for obtaining a competitive rate. Most credit bureaus treat automobile loan applications as one strong pull on your report, provided you submit within a specific time frame. Take advantage of this and compare as many lenders as you can before making a final choice.
  • Find An Inexpensive Vehicle: If you do not have a cosigner and don’t want to make a sizeable down payment, you may need to purchase a less expensive vehicle. It means you will not have to borrow as much, which might help you get accepted even if your credit isn’t great. 

What Credit Score Is Needed To Buy A Car Without A Cosigner?

You don’t require a credit score to purchase a vehicle with no cosigner. In reality, if you have the money to pay cash for the car, you won’t need to take out a loan or submit your credit information.

If you got a credit score of at least 670, which is what lenders usually consider excellent credit, you’d have more alternatives. However, borrowers with credit scores of as low as 300 may still obtain financing alternatives.

Loans That May Be Used To Buy A Vehicle With No Cosigner

These aren’t all stringently auto loans, but they don’t need a cosigner and consider other factors than your credit score.

Provider Starting APRBest For
PenFed1.79%Individuals who are searching for low rates.
Stilt Competitive Individuals including immigrants with no credit history but good financial practices.
myAutoloan.comVaries Borrowers with a poor credit history.
Carvana 3.9%Purchasing a vehicle online with bad credit.

Benefits And Drawbacks Of Using A Cosigner For A Car Loan


  • Higher Interest Rates: The primary advantage of using a cosigner for a vehicle loan is that any credit-impaired driver will instantly get better interest rates by including the cosigner than applying for the loan alone. That’s because lenders use various criteria when assessing credit risk. Therefore, having a cosigner is quite popular among individuals who do not have excellent credit and want to avoid high-interest rates on loans.
  • Buying Time To Establish Your Credit: A cosigner may help a first-time driver or other inexperienced borrower pay for their automobile loan in installments. Borrowers will be developing credit that will benefit them in the future by signing up for a cosigned auto loan. A borrower with a cosigner has more time to establish good credit history through credit cards, real estate purchases, or anything that improves their credit score quickly.
  • Team Project: Another advantage of utilizing a cosigner on an automobile loan is that you have another sympathetic yet persuading voice in the conversation. Some less attentive consumers may not be able to hear the dealer or lender’s message that payments are needed. A cosigner can assist the borrower make this point clear before things get out of hand with shutoffs, repossession, or other last options.
  • Gaining From Experience: A cosigner, as someone with an excellent financial reputation and credit, is typically someone who understands the industry’s intricacies. It implies that a cosigner can offer excellent guidance at the dealership or while borrowing money from the lender. It is not unusual for a new driver to receive better interest rates and sound financial counsel from a cosigner.


  • The Debt Is On The Cosigner’s Back: Debt sharing may be a beneficial experience when a borrower and cosigner collaborate. However, in other situations, when an unreliable borrower manages to get a cosigner into the equation, the person who signs the loan can be in for a nasty surprise when they find out that they are under pressure.
  • There May Be Additional Costs: Another thing that cosigners might not be aware of, or consider, during the loan application and vehicle purchase process is how the lender will utilize the automobile over time. In many cases, the cosigner has a title or is otherwise connected to the car. Exacerbating the problem is that insurance companies will hold a cosigner responsible for claims, and other events may also harm a cosigner who is not the driver of a car. It implies that their first notification of an accident or claim might come in paperwork from an insurance company or another party.
  • Different Mailboxes: If payments are past due or late, it might be challenging to provide proper notice to the borrower and cosigner if the address changes. It creates additional difficulties for the cosigner, who doesn’t know how far behind the borrower is on the loan until it is often too late.
  • Confusion Can Result From Cosigning: If neither party is familiar with the fine print of an auto document, they may not know how to deal with unforeseen consequences. Dealers or financing lenders may include clauses in a contract aimed at a cosigner since they are more likely to have assets or responsibility for their credit. It may assist the lender in obtaining a loan, but it can be a terrible bargain for the cosigner.
  • It’s Possible That Favorable Interactions May Deteriorate: When financial issues arise on a vehicle loan, it’s not uncommon for the cosigner and borrower to disagree. In addition, it may strain friend or family ties to the breaking point. That is why, when thinking about cosigning an auto loan, it pays to be cautious.

Is It Possible To Get A Vehicle Loan Without A Cosigner?

Yes, it is possible to obtain a vehicle loan without putting up collateral. However, the interest rate and amount you may borrow will differ depending on your financial condition and credit history. Because lenders prefer applicants who are low risk, if you don’t have excellent credit, other portions of your application must be substantial before you apply. The notion that you may repay your loan is established by things like a down payment and a continuous income.

How To Obtain A Vehicle Loan Without A Cosigner

You may get a vehicle loan from a credit union, internet lender, bank, or dealership that doesn’t need a cosigner; however, the best option for you will be determined by your credit.

If you have terrible or no credit, you might want to visit online dealerships and lenders first. Borrowers with excellent to good credit may be able to get competitive rates at a credit union or bank than they would when using an online dealership or lender.

How Can I Obtain A No-Cosigner Vehicle Loan With Bad Credit?

If your credit is terrible, you may have difficulty finding a vehicle loan without a cosigner. Some internet lenders specialize in financing vehicles for people with bad credit. Buy here pay here (BHPH) dealerships also provide financing to consumers who don’t fulfill strict capital requirements set by banks.

When it comes to BHPH loans, the rates are typically higher because you pose a greater perceived danger to the lender. And it would be best if you were wary of automobile frauds such as yo-yo financing and other fraudulent methods employed by less-reputable lenders to entice you into spending more money.

How Can I Get A No-Cosigner Vehicle Loan If I Have No Credit?

If you do not have a cosigner or credit, you may be limited to the same few alternatives as someone with poor credit. In addition, because a lender can’t evaluate your ability to pay back the loan, you’re seen as a greater risk than someone with insignificant credit history.

Nevertheless, there are still car loan alternatives for individuals with no credit. If you want to go through a credit union or bank, having regular employment and a sizeable down payment might be beneficial. Otherwise, an internet lender or dealership may be your best bet.

Is It Necessary For First-Time Car Buyers To Have A Cosigner?

If it’s your first time purchasing a vehicle, you don’t necessarily require a cosigner, especially if you got good credit. However, if you haven’t established your credit history yet, you’ll want to work with a company that considers other elements of your finances like Stilt. In addition, College students might want to check out lenders like Boro, which evaluate your academic performance and subject area instead of your income and credit score.

Is It Necessary To Have A Cosigner If I Have Excellent Credit?

Borrowers with excellent credit don’t need a cosigner on a vehicle loan very often. In reality, when you have good credit, a constant stream of income, and few liabilities, you can typically anticipate a decently low APR of around 2% to 5%.

Lenders need to see cosigners for borrowers they perceive as higher risk. As a result, a cosigner won’t be necessary if you have been building your credit history and do not have any significant red flags, such as a lot of debt or low income.

What Is The Purpose Of A Cosigner On Auto Loans?

To a certain extent, the amount of assistance provided by a cosigner depends on your finances and the lender. For example, cosigners can assist you in qualifying for a more significant loan amount because lenders often consider your combined salaries.

Cosigners can also assist you in qualifying for a cheaper rate if your credit score is higher. Conversely, they might be able to help you fulfill a lender’s minimal credit requirements even if your score isn’t high enough.

Bottom Line

You may get a car loan regardless of your credit score if you can show that you qualify. Credit unions and banks frequently offer low rates to customers with excellent or good credit, but those with no credit or bad credit should look into online dealerships and lenders first.

Frequently Asked Questions (FAQ)

Is It Possible To Obtain A Vehicle Loan With No Cosigner If I’m 18 Years Old?

It’s possible. Some lenders take on 18-year-old borrowers without a cosigner. You may, however, be limited to less-than-ideal rates as a result of your lack of credit history.

As A College Student, Can I Get A Vehicle Loan Without Needing A Cosigner?

Lenders often treat college students the same as any other borrower. For example, student car loans are available, even if you don’t have a cosigner. However, to qualify, you’ll need to demonstrate that you have a consistent revenue stream and can afford to pay your debts.

Is It Possible To Get A Vehicle Loan Without A Cosigner If I’m Not A United States Citizen?

It is dependent on your residency status. In most situations, you’ll need a credit score, a Social Security Number, and a down payment saved up to get approved. However, if you do not have a US citizen to cosign for you, you may discover that a lender will refuse or be unable to confirm your application.

Do I Need A Cosigner To Refinance My Automobile Loan?

It is dependent on your financial position and credit score. If you have excellent or near-excellent credit, or at the very least a track record of on-time payments for your vehicle loan, refinancing may not require a cosigner. However, refinancing a vehicle loan without a cosigner might be more difficult if you have a bad credit score or no income. Therefore, you might wish to improve your credit rating and earnings before applying in this situation.

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