Financing with No Credit


How Auto Financing with No Credit Works

The idea of buying automobiles with bad credit has become relatively common, however many people are unfamiliar with the process of obtaining auto financing with no credit.

The purpose of this page is to explain the basic concept of buying a vehicle with no credit scores – including what factors lenders consider and what auto loan borrowers can do to improve their chances of getting approved.


Financing With No Credit Louisville KY

Positives and Negatives of No Credit Score Auto Financing

Whether you’re a recent graduate with no established credit or an older borrower who has paid cash their entire life, the Oxmoor Auto Group Special Finance Center can help you obtain the financing you need on the vehicle you want.

Our Special Finance Advisors have compiled a helpful list of positive and negative aspects to having no credit scores: 


  • No credit scores often means the borrower has not acquired any derogatory or “bad credit”

  • A new borrower means new business to a lender and often leads to more auto loans in the future

  • Many lenders have “First Time Car Buyer” and “Recent Graduate” auto buying programs

  • No credit auto loans often offer stronger loan terms than “bad credit” financing

  • While bad credit auto buyers receive different terms based on their scores, auto buyers with no credit are evaluated equally regardless of circumstances


  • Though auto buying programs with no credit do exist, the number of lenders who offer them is limited

  • Because credit scores are the chief way that lenders judge risk, no credit score buyers are often required to provide more documentation than drivers with bad credit

  • Due to the lack of previous payment history, some lenders may require no credit auto buyers to have longer job time, longer rental history, or a larger down payments than bad credit auto buyers

First Time Buyer Program Louisville KY Mazda


Helpful Documents for Obtaining Auto Financing with No Credit

Before applying for an auto loan with no credit history, it is important to gather the proper documentation. Many lenders will require a variety of alternate documents in order to properly evaluate a borrower’s risk level.

Having these papers ready for submission with greatly increase a borrower’s chances of gaining an approval for auto financing with no credit scores:

  • Proof of income (POI) – For W-2 employees, this usually means the most recent month’s pay stubs. If the borrower receives a 1099, recent bank statements showing income deposits.

  • Proof of Residence (POR) – Documents showing the borrower’s permanent address. This can be a recent utility bill, insurance declaration page, or bank statement.


Questions? Click the phone to speak with a Special Finance Advisor now!