You see the ads and multiple web sites claiming they approve car loans with no credit check. Are they legit or is this a marketing gimmick?
First lets address why anybody would be interested in finding a “no credit check car loan”. While there are a number of reasons the most common issues would be past bad credit issues, late payments, paid in cash, no credit or not enough income.
Most of these issues can easily be overcome using a subprime bank or private lender, usually at a higher interest rate charge than traditional banks. Depending on your specific situation, your rate can vary anywhere from 4.9% – 29.9%.
Buying a car with no credit check is equivalent to giving a complete stranger a loan without knowing anything about them. It does not happen.
If you have bad credit but need to buy a new car, you may be concerned about your credit score preventing you from being able to qualify for a loan. At a traditional dealership, you typically need to have good credit to be able to qualify for an auto loan.
So what is the alternative? Simple, “In house car financing`. This really boils down to the car dealer extending car financing to you to help you buy a car from them. They will still need to know some thing about you:
This info will help the car dealer determine how much they think you can afford to pay per month and then match you to the vehicle in your price range.
Car dealers with in house financing and leasing companies will generally guarantee your approval for any vehicle of your choice if you have a down payment of 40% or greater.
Whatever your situation is, Car Loan in Canada has a solution to help you get approved and driving. Apply today.