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Understanding No Credit Check Auto Loans
If you have poor credit, a no credit check auto loan probably sounds too good to be true. After experiencing the harsh denial that you’re likely to get from traditional lenders, it’s a refreshing change to find a car dealer that will offer you a car with minimal paperwork and no hassle over your credit score. No credit check auto loans are exactly what they sound like. Your loan paperwork will be completed with only a small amount of personal information and absolutely no look at your credit score. Lenders like these generally assume that you have a poorer credit score or you wouldn’t be pursuing this kind of loan.
There are both pros and cons to this loan. If you have poor credit, this may be the only option that’s available to you. The main benefit of a no credit check car loan is that it allows individuals to get loans who wouldn’t otherwise qualify. The downside to a no credit check car loan is that the interest rate will be higher than what you find with traditional car loans. You may also have very strict limits on how much you can borrow. You’ll usually be asked to provide a recent paystub so the lender can determine what you can afford.
If you don’t have bad credit, or you’re unsure of your credit score, you should start by finding out what your options are with traditional car loans. When you apply for this type of loan, the lender will pull your credit score and can probably tell you what it is. If you don’t want to go through the application process, you can also pay a small fee to check your credit score yourself online. Most sites that provide you with your credit score will automatically renew your membership each month, so be sure to cancel your membership if you only want to see your score once.
If your credit score isn’t high enough to qualify for a traditional car loan, a no credit check loan is your best option. It’s important to have a reliable vehicle. Many people don’t have access to public transportation. Having a car will make it much easier to get to your job on time and earn the money you need to ultimately improve your credit score. Paying off this type of car loan will also help improve your credit score over time if you’re diligent about the payments, making this loan a smart choice in many situations.