Should I Get a No Credit Check Car Loan?
There could be many reasons why you need no credit check car finance. If you have a bad credit history, it can be really difficult to find a lender who is willing to help you to purchase your car. At Loans for People With Bad Credit, we have years of experience working with people with bad credit and we have access to lenders who can help. Find out more about bad credit car loans.
What is a no credit check car loan?
All reputable lenders will do a credit check before they approve you for a car loan – this means that they will have a thorough look at your credit history.
If your credit history is poor, you may want to avoid this. A no credit check car loan means exactly this; the lender will approve the loan without doing a check of your previous credit history.
What you need to know about no credit check car finance
No credit check car loans have far more problems than advantages. You should be aware of the following issues when considering a no credit check car loan:
- High interest rates: these can be over 30%, meaning that you will end up paying substantially more than just the simple loan amount over the full loan term.
- Large deposits required: this is because no credit check car finance is seen as very high risk to a lender, so you will often need to have a much larger deposit than with other types of car loans.
- Payments via direct debit: this is often a requirement from lenders when approving a no credit check car loan. Be careful that you do not default on these payments as this could further damage your credit history.
- Collateral required: due to the high risk element of no credit check car loans, lenders often require collateral as security for the loan. Default on the loan and you could risk repossession and loss of the collateral as well.
- Loan term: no credit check car loans can often have terms of over 5 years. If you’re also paying high rates of interest, you could end up with a loan that is higher than the resale value of the car.
What are the alternatives to no credit check car finance?
If you need a car loan but you have bad credit, there are always better options than no credit check car finance. We can help you understand your options and find a bad credit car loan that suits you.
A no credit check car loan will assume the worst of credit history, so it’s always better to go to a reputable lender who will check your credit history. In most cases, a no credit check lender will assume your credit is worse than it really is. To get an accurate idea of where you’re at, we can help you with a free credit check.
We can help direct you to lenders who will consider your individual case and think outside the box to help find a solution for you.
We can help you with bad credit car loans
Even if you have bad credit, you may still be able to get a car loan without resorting to no credit check car finance.
Speak to us today for the best advice; we can help you find the right lender who will help to get you on the road, whatever your credit record. Get started with a bad credit car loan.
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