Tips for Buying Your First Car with No Credit History

Buying your first car is exciting, but if you don’t have an established credit history, the process can feel intimidating. The good news? With the right approach and a little preparation, you can drive away in your first car and start building your financial future at the same time.

Here are the top tips to help you succeed.

1. Know Your Budget

Before you start car shopping, figure out what you can realistically afford each month. Your budget should account for:

• Monthly loan payment
• Insurance
• Gas
• Maintenance
• Registration and licensing fees

Aim to keep your total vehicle expenses under 20% of your monthly take-home income.

2. Save for a Down Payment

While some of our dealer partners offer zero down car loans, having a down payment:

• Increases your approval chances
• Reduces your loan amount
• May lower your interest rate

Even $500 to $1,000 can make a difference when you're starting without credit.

3. Prepare Key Documents

When applying for a car loan with no credit, having the right paperwork ready speeds up the process. You’ll likely need:

• Valid driver’s license
• Proof of steady income (pay stubs, job letter)
• Proof of residence (utility bill or lease)
• Personal or professional references

4. Get Pre-Approved

Getting pre-approved through Cars with Chloe helps:

• Set realistic expectations for your budget
• Strengthen your negotiating power
• Streamline your dealership experience

Pre-approval also shows sellers that you’re serious and ready to buy.

5. Shop Smart for Your Vehicle

While it’s tempting to buy your dream car, stay practical. Look for:

• Reliable makes and models
• Reasonable mileage (for used cars)
• Affordable insurance premiums
• Strong resale value

A reliable used car often makes the most sense for first-time buyers.

6. Choose Dealer Partners Who Understand First-Time Buyers

Not every lender is suited for customers with no credit. That’s why working with Cars with Chloe is smart—we connect you with dealer partners who specialize in helping first-time buyers succeed with flexible programs tailored to your needs.

👉 Learn more about no credit car loan options here.

7. Make Payments on Time

Once you secure your first car loan, make every payment on time! Timely payments will:

• Start building your credit history
• Improve your credit score
• Help you qualify for better rates on future loans and credit cards

Consistent payment history is one of the fastest ways to establish good credit.

Final Thoughts

Buying your first car without a credit history might feel like a challenge, but it’s 100% achievable with the right preparation and the right support system.

At Cars with Chloe, we’re passionate about helping first-time buyers get behind the wheel and build a strong financial foundation.