Is No Credit Check Car Loan an Option?

Credit Scores are a must while thinking of getting a car loan. Good credit history is equally important and can hamper your dreams of owning a car. What about people who have just started building their credit, or the ones who have no credit history at all? Can they get a car loan without a credit check or not? The answer is yes! You can get a no credit check car loan easily now!

Ways of getting No Credit Check Loan –

1.   Get yourself a Co-Signer

Co-signer is a person who takes your responsibility of no credit history. Their credit history is considered and a loan is given to you depending on their credit history. If you don’t pay your loan in time, it’ll impact their credit history, which obviously you wouldn’t want. By getting a co-signer for yourself, you’ll make lenders feel more comfortable in providing you with the loan.

2.   Be ready to put your collateral at stake

For a no credit check loan, you might be asked for some kind of collateral. The collateral you decide to put up must be worth more than the amount you want as a loan. Whatever you pledge as collateral, approximately 70-80 percent of the value of that security will be given to you as a loan. In case of non-payment of the loan value, collateral will be seized by the lending party.

3.   Make a bigger down payment

For a car loan with no credit check, you might have to make a larger down payment than what you had in mind before. When there’s no credit check being done because you don’t have a credit history or an inactive credit report, go for a bigger down payment of approximately 50-60% of the car value. You’re more likely to get a car loan on the remaining amount.

4.   Pay a higher Rate of Interest

Because you have no credit history, you might be asked to pay a higher rate of interest. In fact, with a higher rate of interest, anyone can get a car loan, no matter what your credit situation is. So be prepared to shed more money. Make sure you repay your loan in time because now you might have a credit situation, but timely payments will better up your chances for any future loan requirements.

5.   Set your documents straight

Your utility and residency receipts, bank transaction history, employment history, timely bill payments and other such records can be considered. So if you have maintained these documents, you can show them to the lenders. It will help them decide in your favour. Getting a loan in this way will definitely kick start your credit history which will help you in the future.

Pros and Cons of Getting a No Credit Check Car Loan?

No credit check loans might sound very easy-to-get loans. No doubt they are, but such loans should be availed only when required. These loans come with their own set of pros and cons which one must be aware of. Let’s look at these positive and negative sides.

Pros:

1. Even the ones with no credit history or bad credit score can get this loan.
2. You can directly get in touch with a dealership and proceed with the requirements on the spot and take away your dream car.
3. Collateral of some valuable kind can be set aside for this loan in case of no co-signer.
4. No credit checks

Cons:

1. Higher interest rates can dig a hole in your pocket. Be mentally prepared for it.
2. A larger down payment could be a problem for some to arrange and pay.
3. No credit check car loan period is generally five years or more. Keep your financial goals organized accordingly.
4. Non-payment of dues can lead to repossession of your car.

We, at Quick Cash Canada,  are masters in approving no credit check car loans. All you have to do is fill in a simple application form with us. We’ll then review your details for a quick car loan but also ensure there are no credit checks performed. You can call us(toll-free) 1-888-517-1625 or apply online for your loan now.

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