What car loan APR can you get away with if you have 6 months with a $250 credit card and have been paying it on time but still have no credit history?


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  • Official comment
    Stilt Team (Edited )

    It may still be difficult to get a car loan and the one you’ll get may want a hefty down payment. Sometimes people without credit history have to pay up to 50% in down payment to get a car loan. Even with these high down payments, the interest rates could be really high - up to 20%.

    You can try to find a co-signer with a good credit history, but I’m assuming you don’t have a co-signer as of now.

    One way to overcome this is to get a personal loan and buy a used car. You may not be able to buy a very expensive car, but it can still help.

    Personal loans are generally fully amortized loans between $1,000 - $40,000 with APR from 5% - 36%. These are the loans you’ll get from companies like Lending Club, Prosper, LoanDeport, LendingPoint and many others.

    1. They need a strong credit history (only 3% of the applicants with less than 6 year credit history are approved on Lending Club)
      1. Interest rates are generally high for people with limited credit or imperfect credit history
      2. Credit Score is not useful if you don’t have a long enough credit history

    But if you go to websites offering these loans, you’ll most likely be rejected because of your limited or zero credit history (irrespective of your credit score). Even if approved by a lender, the average APR for you could be anywhere between 27% - 36%.

    We started Stilt to fix this problem for non-U.S. citizens (F-1, OPT, H-1B, L-1, O-1, TN visa holders). Our application process is designed for them and takes into account a lot of additional factors that other lenders ignore. Our interest rates are only between 10% - 16% (the lowest in the industry).

    About Stilt:


    Stilt provides loans to international students and working professionals in the U.S. (F-1, OPT, H-1B, O-1, L-1, TN visa holders) at rates lower than any other lender. Stilt is committed to helping immigrants build a better financial future.

    We take a holistic underwriting approach to determine your interest rates and make sure you get the lowest rate possible.

    Learn more about us on Wikipedia or visit us at https://www.stilt.co. If you have any questions, send us an email at team@stilt.co.

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