The most effective way to finance a car purchase despite having no credit, or a low credit score, is through the use of a cosigner on the auto loan. When you don’t have a friend or family member capable of cosigning your car loan, your financing options may seem slim. There are strategies and tips you can follow in order to get the car loan you need without solid credit or a cosigner. 
Down Payments Reduce Principals
Small loans are easier to get approved than larger ones, as the monthly payments are easier to make and the lender has less money tied up in your ability to repay the loan. Anyone with bad credit trying to finance the purchase of a car without a loan cosigner should take steps toward reducing the size of the necessary loan. The only way to minimize the amount of money you need to borrow is to pay as much of the car’s asking price upfront with a down payment. Time spent preparing for the down payment, while saving up as much as possible, allows you to borrow less money and increase your chances of the loan being approved.
The Importance of Income
Without a good credit history, your provable income becomes substantially more important while your loan application is considered. Someone with good credit or a cosigner also needs to provide proof of income when applying for a loan, but without either of those elements in place you will be asked to prove not only you level of income, but also the likelihood and longevity of that income. Bring three to five pay stubs, your most recent income tax return, and any other documentation you have that indicates the amount and stability of your earnings.
Communication and Cooperation
Lenders that specialize in working with applicants who have bad credit are known for responding well to honest communication and complete cooperation. Never try to concoct justifications or excuses for your troubled credit history, instead relying on a calm presentation of the facts and what you’re doing to improve your credit worthiness. One of the most important attributes a loan applicant should embody is informed responsibility, which means you have a handle on your financial circumstances and are clearly taking steps in the right direction. Fill out the entire application, be prepared to provide the required paperwork, and answer the loan officer’s questions honestly in order to make yourself look like a reasonable loan candidate.
The combination of a bad credit score and the lack of a viable cosigner can make finding a realistic auto loan more complicated. However, if you approach the car financing process with a clear understanding of your finances and a willingness to do what the lenders ask of you, you and your loan officer can work toward getting your car loan approved.
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