Can You Finance a Car with No Credit?

Hand Typing Numbers on Calculator

Fortunately for many O'Fallon drivers, the answer is yes! You don’t need an established credit history to finance a car, although it can be a little more challenging to get approved. Learn more about no credit car loans and even financing a car with bad credit with the team at Auffenberg Dealer Group. Our finance team would be glad to help you drive home in a reliable and affordable vehicle. 

Financing with No Credit or Bad Credit

If you’re financing a car with no credit, you might need to make a bigger down payment, and higher interest rates are likely. It is important to set a budget, but be sure to leave a little wiggle room. You don’t want to purchase a car at the very top of what you can afford. In addition to setting a reasonable budget and sticking to it, keep the following helpful tips in mind. 

Car Key and Pen on Contract


  • Ask questions and don’t assume you won’t be approved. Don’t assume the first offer you get is the only one you can accept. Ask questions to see what your other options are. There may be one that is a better match for your financial needs. 
  • Enhance your credit score. If you have bad credit, there are ways to effectively boost your score before making a vehicle purchase. Use your credit card on small things and immediately pay it off. This is a great way to improve your credit score quickly. 
  • Know your budget and your credit score (if you have one). When applying for financing, your credit score can take a hit. Keep all of your loan applications within a 14-day period to limit the potential damage to your score.
  • Separate price negotiation from financing. Remember that you do not have to accept the first offer presented to you. Many dealerships go through multiple lenders.
  • Expect some higher costs. You may receive higher interest rates, a larger down payment, or both if you have no credit.
  • Keep leasing in mind. Be sure to consider leasing if it is right for your driving needs. With leasing, your monthly payments are lower than with traditional financing. They will still be higher than they would be with an optimal credit score, but it can still be a more affordable alternative. 

Apply for a Loan at Auffenberg Dealer Group

At Auffenberg Dealer Group, our finance team takes the hassle out of obtaining a bad credit car loan. Learn more about our bad credit car finance options, leasing options, and more by contacting us or stopping by to chat with our finance experts. Be sure to peruse our vehicle specials to help you save even more.

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(618) 622-4517

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Auffenberg Dealer Group
Auffenberg Dealer Group
187 Auto Court
O'Fallon, IL, 62269 US
(618) 622-4517
Auffenberg Dealer Group , .