Although no credit check auto loans are costlier than regular auto loans, they can still help in at least more than a couple of ways.
IT SAVES TIME. If you’ve ever purchased a car with a regular auto
loan, you know that it takes 3-5 hours at the dealership to make the
purchase. There are tons of paperwork to read and sign.
No credit check auto loans require only minimal paperwork. Verification of employment and personal identification are all that’s needed.
In many cases, a borrower applies and gets approved on the same day.
QUALIFICATION IS EASY. Almost anyone qualifies as long you have adequate income and a stable job.
PAYMENTS ARE SIMPLE. Most dealerships that approve no credit check loans require weekly or bi-weekly payments that are dropped off at the dealership. You may pay by cash or check. Some dealers accept mailed payments if you can get the payment to them by the due date.
In addition, frequent payments help you avoid missing a payment and
stay on track.
What Kind of Income and Job Qualifies?
All you need to qualify for a no credit check auto loan are sufficient income and a stable job.
The documents that are usually required to verify these are copies of your most recent paystubs, income tax return and bank statements.
Most lenders have a minimum income requirement. But what if you’re making below the minimum? There are a couple of ways:
Aside from sufficient income, lenders also want to see that you have
been at your job for at least 5 years. In fact, experts say that you
can still be considered a good credit risk if you have been at your
job or home for 15 years or more.
Lenders thoroughly examine the stability of the company you’re working in or your business if you are self-employed.
What if your company does not prove to be that stable? What if they have just laid off several employees recently, for instance? In this case, lenders might ask you to pay a bigger down payment.
If you’re a service member, you don’t have to shop around that much because military auto loans can give you competitive rates, even if you don’t have stellar credit. Go to them first instead of heading to no credit check auto lenders right away.
Things to Remember
No credit check auto loans are still high-risk loans. Expect to get a high interest rate and pay a big down payment.