Myths About Buying a Car with Bad Credit or No Credit

couple stands with car dealer next to car

While having a poor credit history can make buying a car a bit challenging, it doesn’t make it impossible. While your car loan or auto financing options and terms may be more limited than that of car buyers with stronger credit histories, buying a car with bad credit or no credit isn’t as challenging as it may seem.

If you’re having reservations about buying a car with a poor credit history, here are a few bad credit myth busters that may help ease your mind:

  1. Getting auto financing is impossible if you have bad credit or no credit. This is false. Typically, a good option for car buyers with bad credit or no credit is to have someone with a positive credit history cosign on your car loan or auto financing. But let’s say you don’t have or want anyone to cosign for you. You can always apply for subprime auto financing, which is available to borrowers with poor or limited credit history.

    Credit Acceptance is an indirect subprime finance company that enables car dealers to offer credit approval to everyone, regardless of their credit history. And, since we report to the three major credit bureaus, car buyers with bad credit or no credit can improve their credit history with on-time car payments. Here’s how you can get started!

  2. If you buy a car with bad credit, you’ll have to pay higher interest rates forever. Also false. Although credit-challenged car buyers may have more limited auto financing options than those with higher credit scores, making on-time car payments can help improve their credit history, allowing them to move on to traditional financing.

  3. A bad credit history can never be rebuilt. This couldn’t be any less true. Although late or missed payments can negatively impact your credit and can stay on your credit report for up to seven years, there are several ways you can rebuild your credit history to an even better place than it was before. This includes paying your bills on time, adopting better spending habits, paying down debt and more.

  4. Checking your credit report will hurt your credit score. Well, not exactly true. Reviewing your own credit report results in what is known as a “soft inquiry,” which has no impact on your credit score. You are allowed one free credit report check every 12 months at

    However, when you apply for credit and a lender reviews your credit report, this is known as a “hard inquiry,” which can affect your credit score. It’s good to review your credit reports at least annually to check for any errors that could be impacting your score.


Having a less than perfect credit history shouldn't discourage you from buying your next car. Our auto financing program enables car dealers to offer credit approval to everyone, regardless of credit history. And with on-time car payments, you can rebuild your credit.

Simply fill out the form on our website to get connected with an enrolled car dealer that can help you purchase a car today!