Buying your first car is a big step, and having little or no credit history is completely normal. First-time buyers are welcome at Liberty Approved. We'll walk you through every step and explain anything that's unclear.
No credit isn't bad credit
If you've never had a loan or credit card, lenders don't have much to go on. That's different from having bad credit. To fill in the picture, they'll look at:
- Your income: recent pay stubs or bank statements
- Your job: how long you've been there
- Where you live: a lease or utility bill in your name helps
- Your down payment or trade-in
- Other bills you pay on time, like rent and your phone
Tips for first-time buyers
- Set a budget that covers everything. Include insurance, gas and maintenance, not just the car payment. Financed vehicles almost always require full-coverage insurance, so get a quote first.
- Choose a practical vehicle. A dependable car with a comfortable payment is the best way to start.
- Gather your paperwork. See what to bring to get approved.
- Consider a co-applicant (optional). A parent or partner with established credit can help, but many first-time buyers apply on their own. See no cosigner car financing.
Your first loan builds your credit
Every on-time payment adds to your credit history. Your first car loan can set you up for better terms on your next one. Read our first-time buyer guide for more.
Your next step
- Apply online. Get pre-approved in about two minutes. The online form doesn't pull your credit.
- Talk it through. We'll reach out to go over your options, what paperwork you'll need and which vehicles fit your budget. Rather talk first? Call (445) 260-0398.
- Drive it home. Visit us at 6735 Essington Ave, Philadelphia, PA 19153, finish the paperwork and test drive the vehicle you picked.
Approval always depends on your application and the lender's review. We'll always be upfront about where you stand.
Questions
Can I get a car loan with no credit history?
Often, yes. Lenders look at your income, job, residence and down payment when there's little credit history to go on. Apply online. It doesn't pull your credit.
Do first-time buyers need a cosigner?
Not always. A co-applicant with established credit can help with approval or terms, but many first-time buyers apply on their own.
Do I need full-coverage insurance on my first car?
If you finance, almost always. Lenders typically require comprehensive and collision coverage. Get a quote on the specific vehicle before you buy.
Updated October 2026 by the Liberty Approved team. General information, not legal or financial advice. Approval always depends on your application.