When you choose car finance with no credit checks, your affordability is assessed prior to selecting the vehicle. It doesn’t feel good to get rejected for a car loan due to poor credit. It is true that traditional lender often does not accept applications for loans if they find that the customer has bad credit. This can be frustrating and stressful. If you are in such a situation and need to buy a car, you may well explore the no credit checks car loans option.
You may have heard of something called guaranteed no credit check car finance. This is offered by dealerships on ‘buy here pay here’ basis. These dealers are able to offer car finance with no credit checks as they do not rely upon banks or other lending companies. This is why it is also known as ‘in-house financing’.
The big advantage of ‘in-house financing’ for a customer is that the approval is not based on the credit score. The dealers are more flexible with the approval criteria when compare with the traditional lenders. The approval is based on your monthly income, employment details, stability at your current residence, and so on. Also, the application to approval process is faster, which makes it easy to finance a car with no credit check here.
When you opt for car finance with no credit checks at a dealership, you get flexible payment options. Often, dealers match the payments with your paydays, so, you may be making your payments weekly, bi-monthly, or monthly. Many dealers require that you make the payments in person while there are others that allow online payments as well.
In the traditional lending system, you select a vehicle and arrange to finance subsequently. However, when you choose car finance with no credit checks, your affordability is assessed prior to selecting the vehicle. Once you have been approved for a certain amount of the loan, only then the dealer will provide you access to the cars to choose from.
Like with any other purchase, it is best to shop around for guaranteed auto loans. You are not obliged to settle for the first option that you find. Use the internet to locate lenders and dealers that have car finance with no credit checks programs on offer. Seek quotes from multiple providers to compare the plans, interest rates, loan tenure, applicable fees, prepayment penalties, and so on. However, make sure to deal only with reputed companies that have been in the business for long.