Just like mortgage financing, auto financing keeps getting tougher, especially for individuals with no or low credit scores. Lenders check on your credit score to confirm whether or not you will be able to honor your payments, and having low or no credit history means you are a riskier borrower and your chances of getting a car loan will be slimmer. This factor, coupled with fewer job opportunities, layoffs, and other uncertainties, are making many Americans hold onto their old cars as opposed to upgrading their rides.
All is not lost though; there are some few options for purchasing a car without a credit check. Here they are:
While co-signing is not a viable option for many, finding a co-signer with excellent credit score will give you better chances of securing a car loan. Here, the co-signer agrees to include his or her particulars to your loan, thus assuming the responsibility of being liable for payments in case you default. Remember that failing to make your payments on time not only puts you at a risk of losing your car but can also break your indispensable personal relationship with the cosigner.
Find a loan on your own
Depending on your prevailing circumstance, you may have various options. For instance, some lenders provide loans to students who do not have any credit records. Also, if you are a member of a credit union, you have higher chances of getting a loan as these institutions are much smaller and more eager to work with you on a personal level.
Go for “buy here, pay here” dealers
If everything else fails, “buy here, pay here” dealerships are your only options to get that set of wheels. These new sales channels are typically independent dealerships that underwrite the car loan themselves, though at an interest rate that is a little bit higher than regular bank rates. Many of these dealerships are “no credit check car dealers” with less strict policies and specialize in working with individuals with bad credit scores.
Frank’s Auto Credit is a ‘Buy Here Pay Here Dealership’ in CT. We help those with bad or no credit score to get a car they need to drive their way to success. Even with your damaged credit record, we guarantee you an approval rate of 100 percent! As one of the few car dealerships that don’t check credit scores, Frank’s Auto Credit understands that having no credit or poor credit should not prevent you from buying a quality used car at a budget-friendly price. Also, we do not involve any outside financial institution. Our customers settle their payments directly to us, either weekly or bi-weekly. Contact us today or simply fill a credit application form online and let’s get you started. You will not only get a variety of quality pre-owned cars, SUVs, and trucks, but also get financing on them.