DACA Car Loans: The Complete Guide

Being a Dreamer has its challenges — especially since Trump took the Presidential Office. One of the challenges you’ll likely encounter as a DACA recipient is getting a car loan. Many lenders are not willing to offer loans to people who are not U.S. permanent residents, citizens, or at least on a formal visa. Especially not car loans for DACA recipients. If you are a Dreamer in need of a car (and a car loan) take a look below. We’ll explain why it might be challenging for Dreamers to get DACA car loans and we also give a few tips on how you can make the process easier.

Can DACA Recipients Get Car Loans?

The good news is car loans for DACA recipients are available. Unfortunately, it might not be as easy or as simple to get a car loan like most other people, but it is still possible. The important thing is not to stop trying after the possible first or second no. If you shop around, you will find a lender who offers car loans for DACA recipients. So can DACA recipients get car loans? Definitely yes!

Why is it Hard to Get a Car Loan on DACA?

Many DACA recipients don’t get a car loan because they don’t have a credit score. Surprisingly, it is not actually because they are a Dreamer. This is good news because you can build your credit score (as you’ll see below). Alternatively, you can choose to go for a lender who doesn’t require a credit score, like Stilt.

Another reason lenders may not give you a loan is if you don’t have a social security card. This is definitely a problem, but again a problem you can solve.

Despite the above, there are some great creative lenders out there who offer DACA car loans. All you need to do is search!

5 Tips for Getting a DACA Car Loan

1. Build Your Credit

Banks are always more favorable towards borrowers who have a good credit score. As explained above, Dreamers often don’t get car loans because they actually don’t have a credit history — not because they are Dreamers. Fortunately, you can build your credit score. This means you’ll have to wait a little longer before you apply for your loan, but if you build a good credit score you’ll get a loan easier and get a better rate.

There are many ways you can build your credit score. For a few tips, take a look here.

2. Check Your Credit Report

The history on your credit report determines your credit score. A good credit score will likely get you lower interest rates and might sway a lender to give you a DACA car loan. So, it is vital to ensure that your credit report is correct.

You can get one free credit report from each of the three credit reporting bureaus (Experian, Equifax, Transunion). Once you get your report, go through it properly and check if there are any mistakes. If there are, make sure you dispute them and don’t stop until they are corrected.

3. Find a Cosigner

A cosigner is someone who signs your loan application with you. This person will be liable for your loan if you default on your DACA car loan payments. Lenders see cosigners as additional security, so if your cosigner has a good credit score, it might help lower the rate on your DACA car loan. If your cosigner is a U.S. permanent resident or citizen, lenders that would not ordinarily lend money to you as a Dreamer might now consider it.

4. Shop Around for Loan Options

As it might be difficult to get DACA car loans from some lenders, it will definitely be a good idea to shop around for different lenders and loan options. Traditional banks are not the only loan providers anymore. There are various online lenders and credit unions that might consider giving you a DACA car loan.

It is important to do proper research on the loan options you get offered. And even though you might be provided with credit, it might be a bad financial decision to use that type of loan to buy a car.

5. Read the Fine Print

Once you are offered a loan, ask for full disclosure of all the loan terms. This is where you read the fine print (sometimes quite literally). Different lenders offer different terms so it is important to take note of what each specific lender offers you.

You should look out for things like:

• Origination fees
• Early payment penalties
• Late payment penalties
• Other hidden costs

Best Alternate Lenders for Car Loans

Avant (Best for Quick Approval)

Check rate on partner page

on partner page

Avant Personal Personal Loan

4.0

Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.

Min. credit score

550

Fixed APR

9.95-35.99%

Variable APR

N/A

View details

Overview

• Minimum credit score: 550.
• Fixed APR: 9.95-35.99%.
• Loan amounts: $2,000-$35,000.
• Repayment: 1 to 5 years..

Qualifications

• Strong credit and income may secure lower rates, but not mandatory.
• Must possess a bank account in good standing under your name.
• A valid Social Security number is required.
• Bankruptcy should not be active.
• Minimum credit score of 550; using FICO score version 8 and VantageScore version 3.
• Minimum monthly net income: $1,200 from various sources including employment, alimony, retirement, child support, and Social Security payments.

Pros

• A dedicated mobile app is available for loan management.
• Offers a diverse selection of repayment terms.
• Customer service is accessible seven days a week.

Cons

• An origination fee might be applicable.
• They don’t offer co-signed, joint, or secured loan options.
• Direct payments to creditors aren’t available for debt consolidation loans.

AmOne (Best of Low Credit Score)

Check rate on website

on website

AmOne Personal Loan

4.5

Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.

Min. credit score

600

Fixed APR

3.99%-35.99%

Variable APR

N/A

View details

Overview

• Minimum credit score: 600.
• Fixed APR: 3.99%-35.99%.
• Loan amounts: $1,000 to $50,000.
• Repayment: 1 to 7 years.

Qualifications

• Must be at least 18 years old.
• Must be a U.S. citizen or permanent resident.
• While there’s no specific income requirement, a consistent source of income is essential for the applicant.

Pros

• Suitable for individuals with lower credit scores.
• No cost for the matching service.
• Attractive loan rates.

Cons

• Acts as an intermediary, not a direct lender.
• Risk of multiple contacts from prospective lenders.
• Lack of clarity on lender details.

Upstart (Best for Fair Credit Score)

Check rate on website

on website

Upstart Personal Loan

4.5

Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.

Min. credit score

None

Fixed APR

4.60-35.99%

Variable APR

N/A

View details

Overview

• Minimum credit score: None.
• Fixed APR: 4.60-35.99%.
• Loan amounts: $1,000-$50,000.
• Repayment: 3 or 5 years.

Qualifications

• Hold U.S. citizenship or possess permanent residency.
• Be a minimum of 18 years old in the majority of states.
• Provide a valid email address and Social Security number.
• Be currently employed full-time or starting a full-time job within the next six months.
• Maintain an active bank account with a recognizable routing number.
• Not have declared bankruptcy in the past year.
• Ensure no delinquencies are present on their current credit reports.
• Record fewer than six hard credit inquiries in the past six months, excluding inquiries for student, auto, or mortgage loans.

Pros

• Welcomes first-time credit users.
• Provides quick fund disbursement.
• Allows flexibility in adjusting payment due dates.
• Offers pre-qualification through a soft credit inquiry.
• Customer support available seven days a week.

Cons

• Origination fee may apply.
• Does not offer joint, co-signed, or secured loan options.
• Lacks a mobile application for loan management.
• Limited to two loan repayment terms.

OneMain Financial (Best for Good Rates)

Check rate on website

on website

OneMain Financial Personal Loan

4.5

Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.

Min. credit score

None

Fixed APR

18.00-35.99%

Variable APR

N/A

View details

Overview

• Minimum credit score: None.
• Fixed APR: 18.00-35.99%.
• Loan amounts: $1,500-$20,000.
• Repayment: 2 to 5 years.

Qualifications

• Must possess a Social Security number or individual taxpayer identification number.
• Minimum age: 18 in most states.
• No set minimum credit score, but some credit history is preferable.
• No specific minimum income, but must cover personal expenses and the loan’s monthly payment.

Pros

• Flexibility to select and modify your payment date.
• Offers both joint and secured loan options.
• Provides quick loan disbursement.
• Enables direct payments to creditors for debt consolidation.
• Comes with a seven-day policy for loan cancellation.

Cons

• Interest rates are relatively high compared to competitors.
• An origination fee is applicable.
• Doesn’t offer any rate discounts.
• Offers a restricted range of loan amounts.
• APR is not displayed during pre-qualification.

SoFi (Best for Good Credit Score)

Check rate on partner page

on partner page

SoFi Personal Loan

5.0

Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.

Min. credit score

600

Fixed APR

8.99-35.99%

Variable APR

N/A

View details

Overview

• Minimum credit score: 660.
• Fixed APR: 8.99-29.99%.
• Loan amounts: $5,000-$100,000.
• Repayment: 2 to 7 years.

Qualifications

• Targets borrowers with good to excellent credit; fair credit may qualify.
• Minimum credit score of 660.
• At least two years of credit history.
• Proof of sufficient income sources or employment offer starting in less than 90 days.
• Must be a U.S. citizen, a permanent resident, or a visa holder (J-1, H-1B, E-2, O-1, or TN).

Pros

• Soft credit check is available for pre-qualification.
• Offers high loan amounts.
• 0.25% rate reduction for auto pay.
• No origination fee.
• No prepayment penalty.

Cons

• Minimum 660 credit score required.
• Minimum $5,000 loan amount.

Conclusion

If you are a Dreamer wondering if DACA recipients can get car loans, the answer is yes! There are lenders out there willing to offer you a loan to buy a car. Make sure you apply the tips we provided above to make the process easier and keep on searching. You’ll find a lender willing to give you a DACA car loan in no time!

Rohit Mittal

Rohit Mittal is the co-founder and CEO of Stilt. Rohit has extensive experience in credit risk analytics and data science. He spent years building credit risk and fraud models for top U.S. banks. In his current role, he defines the overall business strategy, leads debt and capital fundraising efforts, leads product development, and leads other customer-related aspects for the company. Stilt is backed by Y Combinator and has raised a total of $275M in debt and equity funding to date.

See author's posts