If you don’t have a boatload of cash, buying a car can be a tricky. To get an auto loan, you need to qualify for one, but you might get stuck in the application process if you don’t have credit. There are plenty of reasons people might not have credit reports:

If you are a young adult, for instance, or new to the country, or perhaps you just don’t use a credit card.

Don’t fret! Here are a few tips to make the car-buying process easier. 

How Credit Affects the Car-Buying Process

Most lenders check for credit when you apply for a loan. Your credit history shows a record of repayment on any outstanding debts. Without a credit report, lenders don’t know whether you are more or less likely to stay current on the bill. As such, some institutions won’t approve a loan for applicants with a bad or minimal credit history. If a loan is approved, borrowers with no credit may be required to make larger down payments or pay higher interest rates.

Buying a Car with No Credit

When it comes to building a credit history, everyone has to start somewhere. The good news is that there are a few techniques that car buyers can try in order to obtain a vehicle. 

1. Use Alternative Records 

Alternative records can be a good way to show that you make payments on time. For example, rent and utility bills can demonstrate that you take the responsibility seriously. Not every lender is willing to consider this information in the application.

2. Raise Your Down Payment

Not having a credit report is a sign that the lender is taking on a higher risk. The same could be said of applicants with inconsistent income or spotty employment history. However, there are opportunities to demonstrate your reliability to the lender. For example, you could make a larger down payment. Putting more money down isn’t always possible, but it could make your application more appealing. 

3. Consider a Co-Signer 

Many borrowers — especially college students and other young people — apply for a loan with a co-signer. A co-signer can give you the benefit of their credit history as a way to boost your application. Of course, they will also be responsible for the loan, so not everyone is eager to help. Put together a solid proposal with data to support your dependability and you might win a co-signer to the car-buying cause.

4. Ask a Dealer About Financing

If your local lender isn’t interested in accepting your application, check if the dealer offers financing options. Dealerships may have different approval requirements and could provide terms that compete with traditional lenders. Some dealers also feature in-house funding, which can make it even easier for applicants to qualify. 

If you don’t have credit and need a loan, you deserve options. With these tips and Buy Here Pay Here financing from JDBNOW, you may be able to get back on the road faster than you thought.