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This question is a little vague, but yes you can finance a car without a co-signer. Let’s look at two  different instances of financing a vehicle without a co-signer.

Limited to No Credit History

The most common reason that a bank may require a co-signer is that you have never had credit in the past, or your credit history is still very young. While a traditional bank may want a co-signer, you should have a good chance of beating that requirement by applying for a loan with a credit union. Many credit unions have slightly looser lending requirements than larger banking institutions. Another thing to consider is obtaining a credit card. This will only help if you have about six months before you need a car. A credit card will give you some sort of a credit history and six on-time payments may boost your credit score enough to bypass the need for a co-signer.

Bad Credit History

The second most common reason that a lender may require a co-signer is bad credit. If you do not need the new car immediately, you could try to work on your credit score. A secured credit card will help, and so will clearing up any mistakes on your credit report. You could also try to pay off any accounts that are in collection. If you need the vehicle right away, you can try credit unions and other alternative financing institutions.

Another possible route to avoid the need for a co-signer, whether you have bad credit or no credit, is to work directly with your dealer to arrange financing. Typically, if you have sufficient credit to do so, it is best to eschew dealer financing in favor of working with a bank or credit union. They often offer lower rates. However, if you are in a hurry to buy a car, dealer finance managers typically have lenders in their network who fund loans for people with bad or no credit, often without a co-signer.

Good Credit History

If you have good credit, typically a score north of 700, then you should not have to worry about a co-signer at all. If you have a parent with really stellar credit willing to co-sign, then having them do so may get you a lower interest rate and better lending terms, but it probably isn’t worth it. After all, co-signing can end up placing a great deal of strain on personal relationships, and it is best avoided unless absolutely necessary.


About the author: Jerry Coffey


Jerry Coffey is the financial expert here at A recovered "debtaholic," he now preaches frugal-living and sound money management here and at, where he is the chief contributor. He works for a major automaker.


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