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Auto loans for people with bad credit and no co-signers exist


You can get a bad credit car loan at your local dealership, but what about a bad credit car loan without a co-signer? AT Auto Express Creditwe can get you approved in minutes.

Only a few years ago, Auto lenders required you to have a good to perfect credit score to get approved for an auto loan, and if you didn’t have good grades, you better have a big down payment and a co-signer ready to go. These days, some lenders are loosening the reins and offering bad credit car loans to people who don’t have a co-signer. And no, it’s not too good to be true!

A cosigner is usually a family member or friend of the person who needs a loan but doesn’t have the credit to get one on their own. The co-signer must have a better score than the main applicant and be able to balance their bad credit score. This person will be added as a co-buyer on the loan agreement, and if the primary borrower cannot afford the payments, the co-signer then becomes legally responsible for repaying the remaining balance on the loan. All timely and untimely payments are flagged to both parties’ credit reports and will help – or hurt – their scores depending on whether the payments are made on time or not.

Where to get credit car financing without a co-signer

In most cases, when someone starts the auto finance process; they go straight to their local car dealership, choose a car and apply for the loan. When you have bad credit and don’t have a co-signer, the process is somewhat different. With damaged credit, the first thing to do is apply for pre-approval online. This lets you know exactly how much you can be approved for and gives you peace of mind knowing you won’t be turned down at the dealership.

You should work with dealerships that offer in-house financing, not a third-party finance company. These dealers are able to build a loan for just about anyone, regardless of their credit history. Although they suggest having a co-signer for your own benefit, they don’t need one and you will find the process much easier.

These dealerships are often referred to as buy here, pay here (BHPH) or rental car bundles with an option to buy. Often, they won’t even do a credit check on you, and as long as you have a deposit, you’ll be approved. The biggest drawback you will encounter with these dealers is that, because they don’t pull your credit report to approve you for the loan, they also usually don’t report your payments to the credit bureaus. This means that in a few years, when you’re looking for a new car loan, you’ll have to go to the same dealership – unless of course you’ve taken out a secured credit card or some other type of financing to build up your credit.

Why these bundles are useful for bad credit buyers

The best thing about financing a used car from a Buy Here Pay Here car dealership is that it guarantees your approval. All they want to know is that you earn money to pay your car bill. They don’t care what your credit report says and therefore they also don’t care if you have a co-signer on the loan.

The other benefit of BHPH dealerships is that they will work with your payroll schedule to make payments more affordable for you. This is extremely useful because:

  • Car buyers with bad credit experience higher interest rates
  • Your payouts will be higher without a co-signer

If you don’t – or can’t – make a lump sum payment each month, you can opt for weekly payments that fit your job pay schedule.

Co-signers can reduce your payments

Let’s say you have someone who is willing to co-sign for you, but you don’t want to ask them to take on such a big responsibility. You may want to rethink this decision. Having someone else on your loan with a good credit score has many benefits for you. For example, you will experience:

  • Lower monthly payments
  • Lower interest rates
  • Better chance of approval

Having a cosigner will give you a better chance of being approved for a traditional dealership, and when you have a higher credit score on your application, you’re likely to receive a lower interest rate. This will not only make your monthly payments more affordable, but will also reduce the total cost of the vehicle over the life of the loan.

Can you finance new cars with bad credit and no co-signers?

While new cars are shinier, prettier, and tech-cooler, they’re also more expensive. This is why it is suggested that buyers who have poor credit ratings look at used vehicles rather than new ones. It’s not that borrowers with bad credit don’t deserve to drive a nice new car, but because of the higher interest rates they’ll incur on the loan, a cheaper used car is more affordable.

The last thing you want is to end up with worse credit scores because you started missing payments on your new car loan because it’s just too expensive. You can find a nice, low-mileage, lightly used vehicle that fits your budget perfectly and can be instantly approved without the need for a co-signer, and you’ll be just as happy, if not happier.

As we see

Experiencing bad credit is never something to look forward to, but you shouldn’t let it ruin your financial life either. If you’ve learned from your past mistakes, you can get into a great used car on your own without the help of a family member or friend. You don’t need to have a co-signer or impeccable credit to qualify.

AT Auto Express Credit, we’ve been helping people with damaged credit find a dealership in their area that will approve them for a car loan for over 20 years. Get started today, use our online car loan application to get pre-approved. We’ll then schedule a meeting with the CFO of one of our partner dealerships near you, and you could be driving away in your new car tomorrow!