Is No Credit Check Car loan Right Fit For You?
No credit check car loan may not be the best option for you, but if your options are limited, we recommend that you read this post to understand how it works before you consider this.
As the name rightly suggests, when applying for a no credit check car loan, the lender won’t be running a check on your credit file as they normally would for other loans. If you are a new borrower or have issues with your credit file, you might consider looking into this option. However, there are very few lenders out there offering no credit check car loan as an option.
Here are some things that you should know
- This is a costly loan with high rate of interest, establishment fees coupled with early exit fees.
- You would end up paying a lot more for your car than you normally would
- There is a high initial deposit involved as the lender wants to minimise their risk
- You might not be able to always choose the vehicle you want
The lenders have also been known to circumvent the law by adding the interest to the wholesale price and advertising it as an “interest free loan” which is misleading and also covers their entire risk.
Your initial deposit covers the entire wholesale price that they have paid making it a “risk free” loan for them. All the payments that you make thereafter are just making them more profit.
If this is the only option left with you, make it count by using it as a benchmark for your future loans by displaying a good track record to your future lenders.
We hope you find this article helpful if you are considering a no credit check car loan. Please free to get in touch with QMM Finance if you have any queries.