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How to Get an Auto Loan With No Credit Check

How to Get an Auto Loan With No Credit Check

Many people have bad credit or no credit established at all, which can make it difficult to receive a vehicle loan as most loan issuers check your credit score and report. Fortunately, if you have bad credit there are still ways to get a vehicle loan without having your credit scored checked. This is especially the case if you have a solid regular income.

This article will outline the various ways you can receive a vehicle loan with no credit check.

Note that if you have bad credit, don’t wait around and live with it. REPAIR YOUR CREDIT. If you get started now, you can fix up your credit significantly in just a year. In a couple years, you can have good credit and the bad credit problems will vanish. Read our guide on how to repair your credit.

As a warning, we recommend you do your OWN research. Do NOT just apply for some bad credit loan you see online just because it’s EASY. Do NOT believe everything you see online about getting an auto loan with bad credit. The truth is that if you you do have bad credit, it’s going to be DIFFICULT to get an auto loan. And if you do manage to get one with poor credit, you are going to pay more money in higher interest rates and / or a high down payment amount. 

There is no ‘secret method’ you are going to discover, so with bad credit, be prepared for some sort of compromise on your part, with that compromise usually being more money paid by you. Wit h that warning out of the way, let’s look at your main options.

1. Check with your bank

The first thing you should do when choosing alternative options for a vehicle loan, is check with the bank or credit union that you belong to. Many times if you have been with them for a long time, show that you have a steady income, and have paid other loans off in the past, you might be able to get a loan with no credit check. Also, even if they run a credit check and see you have bad credit, they might still approve you for the loan, however they will just increase the amount of interest you will have to pay. Expect banks to also have a good look at your employment history as well. Banks (or any LEGIT lenders) will want to be sure you can repay your loan and won’t hand you a loan you can’t reasonably repay it, even IF you are willing to pay very high interest rates.

2. Ask Family and Friends

You can always ask any close family or friends about loaning you some money for a vehicle. Some family and friends would be happy to help you especially if you have a lot of trust established with them. The best part about this is that you will not have to pay any interest. By far, we recommend this option IF you have a network of family/friends who can give you a loan with lower interest or no interest. Just like, make sure you actually pay it back or risk your relationship collapsing.

3. Make A Large Down Payment

If you make a down payment for the outright purchase of the vehicle you may get by with no credit check or at least still get the loan even with a bad credit score. So if you have a lot of money saved up and a bad credit score, your best bet could be to make a large down payment for the vehicle thus avoiding any credit check. Putting a large down payment down will also save you money since your total loan amount will be less, there will be less interest to pay.

4. Apply through Auto Loan Companies

There are several specialized auto loan-issuing companies in existence that will approve you for a vehicle loan with no credit check. You might have heard some of these commercials for these companies over the radio. There are many of these companies out there, as there is a large market people with bad credit who need a loan. These loan companies will need to see your income and expenses to determine if you are approved for the loan. If you have a steady income, and your incomes exceeds your expenses by a reasonable amount you should have no problem getting approved.

Furthermore, with many of these companies you will submit your information online, and within an hour you will know if you are approved or not.

Many of these companies can be found by performing a google search for ‘car loan with no credit check.’ There are several to choose from, the following are some well know loan companies:

  • This site has a very easy to use interface. Just choose the type of loan you want and your location, then enter some financial information and you will have your loan decision within an hour. You can choose from multiple unique offers for the one that best fits your needs.
  • This site is very popular and is accredited by the Better Business Bureau. This site works with you even if you are dealing with a bankruptcy. You can get loans approved for older vehicles with higher mileage, which a lot of other loan issuers will not accommodate you with. On average you will need a monthly gross income in the range of $1500 to $1800.
  • You can get a pre approval within minutes, and you do not have to put any money down. This site guarantees that you will be approved for a loan if you have no credit history at all. However there are terms and conditions to this guarantee, such as having a adequate monthly income.

5. Get A Cosigner

A cosigner is someone who signs onto the loan with you, and if you fail to make payments, it falls under the cosigner to make the payments for you. You can choose anyone to be a cosigner for you,  as it can be family members or friends. Keep in mind that the cosigner puts their credit score at risk by signing onto the loan with you.

If you have a cosigner you will have an easier time getting approved for a car loan with a bad credit score. The risk here is that if you fail to repay, your cosigner is on the line to repay your loan. A lot of relationships have gone down the drain due to a cosigner signing and the co-signee not paying a loan back. So only go this route if you have a ROCK solid repayment plan or you risk relationships.

6. Check Peer to Peer Lending companies

A new type of lender are the so called ‘peer to peer’ lenders. Your loan comes from crowd lending (little bits of funding from a lot of people). The advantage is that peer to peer is a new form of lending that’s often willing to give people who normally could not qualify for a regular loan a chance at a loan. It’s worth looking into. Peer to Peer lending is fairly new and the rules and regulations are still being worked out, but it’s worth looking at if you need an auto loan.

The TWO big peer to peer lenders are the ‘’ and ‘’

7. ‘Buy Here, Pay Here’ Car Lots

Another option you could pursue is a buy here, pay here car lot. First lets begin by saying, this should be the last option you should pursue, only go this route if you are not able to get a vehicle loan with any of the other methods mentioned in this article. A buy here pay here lot means that the dealer you buy the car from is the dealer that will lend you the money for the vehicle.


  • You don’t have to worry about getting denied because of bad or no credit
  • These lots make the decision very quickly, and most people will be approved for the loan.
  • Many of these lots will take in older beater type cards in that can be used for a down payment on a new vehicle.

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  • The catch is that you will have to pay a high interest rate, usually double the rate you would pay with a bank.
  • Furthermore, with a buy here pay here lot is the payments can be a lot different then a traditional loan, as some of these lots will make you come and make the regular payments in person. Others might allow you to pay over the phone, however most make you pay in person. Furthermore, the choice of vehicles that you will able able to choose from can be limited.
  • Another thing to know about these lots is the vehicle will usually have some sort of tracking device installed in them. This is done because if you stop make the payments they will know where to find you.

About The Author

Ben Todd

Ben was a seriously broke graduate student with bad credit who after finding himself rejected for any sort of credit card or loan for most of his adult life, finally decided to get his financial life in order. 'He spent several years reading as many financial advice books and blogs as he could.And suprisingly, Ben found he actually LIKED the topic of personal finance; after fixing his own finances, starting his own successful work at home website business, and using his earnings to get out of debt, created to help others do likewise!

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