So you have a credit history that is not perfect and still need to get a car?
No credit check car loans could be a solution for you if none of the other main stream lenders are willing to give you a go, but be aware that the deal most likely won’t be the most favourable.
How do they work?
Most businesses that provide no credit check car loans are usually selling their own product and price the car and the vehicle finance in a way that it is very hard for them to lose.
Often the car is a cheap trade-in that most of the bigger dealerships would not keep on their own yard to sell and can often come with problems.
Some of these car yards that provide this type of auto loan will request a deposit from the client, which may equal the amount that car yard actually paid wholesale for the car, so worst case scenario for them would be to have to repossess the car and sell it again, which is not a great risk, as in a lot of cases, once the first payment is made, they have actually got more for the car than what they paid.
What to Expect?
The car you would be buying may be overpriced, as they target the client that doesn’t have many options, but still need a car.
What this can mean is that if you want to trade your car in, or payout your loan early, the value of your car would most likely be well short of the finance payout right from the start to the finish of the loan. The best way to combat this is to make more than the minimum repayment if the loan contract allows.
Will a No Credit Check Car Loan Improve My Credit Rating?
Nothing but time can really improve a credit rating, but any kind of loan that can be checked by other motor financiers that were in place after the credit issues noted on your credit file, can be a reason for a main stream lender to consider your application and get a better deal.
Your repayment history would have to be perfect for an absolute minimum of 12 months and would be even better if you had been making additional repayments.
A No Credit Check Car Loan can give you a start to a second chance and rebuilding your own personal credit worthiness.