No Credit Check Auto Loans – Are They for Real?

As outlandish as it may seem, no credit check auto loans do exist. They’re out there, at car lots that offer in-house financing. You’ve seen these places, known as "buy here, pay here" lots. These lots will finance virtually anyone, as long as you can prove you have a job and the income to cover the monthly payments. You may not have the greatest selection of cars in the world, and you may have high interest rates and a high down payment (and forget about getting a new car…these are almost always used car lots). However, if you need transportation of your own, a buy here, pay here lot may just be your best bet.

How can these Car Dealerships Offer these No Credit Check Auto Loans?

These lots can offer no credit check auto loans because they’re not banks. Therefore, they’re not bound by all the laws and regulations that stifle banks from dealing with certain customers. These are usually privately owned lots, and the people who own them can have any type of financing criteria they desire. Some of them even have rent to own programs, where all you do is provide a down payment, and you drive away with the car of your choice. The repayment terms are usually for no longer than two to three years, as these lots don’t want to deal with financing you forever. But that just means you’ll own your car a lot sooner than if you got financing with a bank.

Getting a New Car with Bad Credit – Is it Possible?

Once in a while, new car lots will offer similar deals, such as advertising that "everyone drives." These lots only require you to produce proof of income and employment to get a car, though they’ll still do a credit check. This is because they’ve arranged for special financing promotions through the banks they use. The banks have agreed to finance anyone, regardless of credit, but they still want to know your credit score to determine how high your interest rate and down payment will be. These aren’t technically no credit check auto loans, but your credit won’t be a factor in whether you get the car or not, so the premise of the financing is similar. If you need a car, check out these types of lots, and you’ll be surprised at how quickly you may be able to drive off in the car of your dreams.