A no credit check car loan: the very idea seems difficult to understand. How can anyone, especially in this economy, get a loan without a credit check? These types of car loans are actually becoming increasingly common these days, and we can explain how they work, and how they become beneficial to both the lender and the borrower.
Today, so many people have bad credit because of the poor economy we experienced in recent years. It's simply a fact of life. But a car is a necessity to ensure a solid financial future--without a car, it can be almost impossible to get and maintain a job.
The reason that a bad credit car loan can be given without a credit check is because it is a secured loan. This means that the loan is secured by the value of the car, and if you default on the loan for any reason, the lender can take back the car. This is a win-win situation for them, because as long as the car does not depreciate too much from its initial value, they will always be able to recover any losses.
What Are the Positives?
What Are the Negatives?
Here at Suburban Fresh Start, we offer guaranteed credit approval for everyone. And the best part is that we have a host of bad cedit auto loan lenders who will compete to give you a loan so you will get the best deal you can for your credit profile. And we report your timely payments to the credit agencies, helping you rebuild your credit along the way. Get approved now by filling out our online application.
If you have bad credit, and the car you want to purchase is a cheap used car, then a no credit check car loan is probably the best option for you. Keep in mind the faster you pay off this loan, the better. These loans are generally for very little cash, but with a high interest rate. A no credit check car loan should not be carried as long as a traditional car loan for these reasons.
If your car is over $5000, or if your credit is reasonable, than a no credit check car loan may not be the most optimal choice for you. Shop around and get many online car loan quotes before deciding on which type of loan to get.