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How to get a no credit check car loan

You don't need a credit score for these loans but are they worth it?

It’s possible to get a car loan with no credit check, but be prepared for steep interest rates. You’ll also need to demonstrate to the lender through your income that you can afford your car loan. Before getting a no credit check car loan, you may want to compare offers from lenders of bad credit car loans to make sure you’re getting the best deal.

How do no credit check car loans work?

No credit check car loans work like any other car loan. The difference is that the lender assumes that you have a bad credit history — possibly worse than what you actually have. Because of this, you’ll likely end up with:

  • A large down payment. Since the lender will assume you have bad credit or no credit, it’ll be hard to get full financing.
  • High rates. No credit check lenders tend to offer borrowers the same rates, which are typically less favourable than rates from lenders who’ll weigh your individual factors.
  • Long loan terms. Many no credit check car loans have terms of over 5 years. This combined with high rates means that you could easily end up paying multiple times your car’s value.

Since no credit check car loans likely have high interest rates and unfavourable terms for you as a borrower, they should only be used when no other alternatives are available.

What do I need to get approved for a no credit check car loan?

To get approved for a car loan with no credit check, you’ll need to demonstrate steady income. The lender will ask you to provide copies of your pay stubs or bank statements to determine whether you can afford the car loan repayments. If you’ve been at your current job and home for many years, have a high income and a large down payment, these can also help you get approved.

Consider bad credit car loans

No credit check car loans and bad credit car loans both come with high interest rates. Before taking out a no credit check car loan, however, you may want to get pre-approved for a bad credit car loan first so you know what rates you qualify for based on your personal factors. Some lenders are more lenient than others. They may have the lowest minimum credit score requirement (300), and they may be more flexible with their income requirements. Comparing multiple offers can help you find the best deal for your financial situation.

Compare car loans for poor credit

Name Product Loan Amount Interest Rate Loan Term Min. Credit Score Requirements Table description
CarsFast Car Loans
$500 - $75,000
4.90% - 29.90%
12 - 96 months
300
Min. income of $2,000 /month, 3+ months employed
Get a new or used vehicle delivered to your door.
Browse thousands of vehicles from dealers across Canada and get matched with financing that meets your needs.
Loans Canada Car Loans
$500 - $35,000
0% - 29.99%
3 - 96 months
300
Min. income of $1,800 /month, 3+ months employed
Compare rates from multiple lenders.
Complete a single application to get quotes from different lenders. Bad credit, CERB and EI borrowers considered.
AutoLoanProviders
$7,500 - $85,000
3.99% - 29.99%
12 - 96 months
300
Min. income of $1,800 /month, 1+ months employed
Available in Ontario only.
Apply online and get your new vehicle delivered to your door anywhere in Ontario free of charge. All credit scores considered.
Splash Auto Finance
$10,000 - $50,000
9.90% - 29.90%
24 - 84 months
300
Min. income of $2,200 /month, 3+ months employed
Apply with any credit score.
Get financing for a new or used car. Auto loans for borrowers with fair credit, bad credit, no credit or bankruptcy.
Carloans411 Car Loans
$500 - $50,000
1.90% - 19.99%
Up to 72 months
300
Min. income of $1,600 /month, 3+ months employed
High application approval rate.
Get connected with suitable lenders to finance your next car, van or truck. Check eligibility for this loan through LoanConnect.
Canada Auto Finance
$500 - $45,000
4.90% - 29.95%
3 - 96 months
300
Min. income of $1,500 /month, 3+ months employed
Get financing from partnered local lenders.
Financing for a new or used car is available for borrowers with bad credit, no credit, CERB, EI or bankruptcy.
LoanConnect Car Loans
$500 - $50,000
9.90% - 46.96%
3 - 120 months
550
No min. income requirement
Pre-approval in as little as 60 seconds.
Get access to 25+ lenders through this brokerage. Get your funds in as little as 24 hours.
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Compare up to 4 providers

What do I need to apply for bad credit car loans?

Typically, you need to provide the following when applying for bad credit car loans:

  • Proof of steady employment. This could include your last few pay stubs, bank statements, information about your employer and any other job-related questions.
  • A sizable down payment. The less you have to borrow, the better. Borrowing less than the full price of your car indicates that you’re responsible enough to have saved some money yourself, making your application stand out more positively.
  • Credit check. Unlike no credit check car loans, bad credit car loans will involve a hard credit check.

What are the dangers of a no credit check car loan?

  • Large repayments. Even with long terms, no credit check car loans come with high repayments, thanks to high rates.
  • Repossession. If you’re late enough on your car loan repayment, you could end up losing your car.
  • Car loan scams. While no credit check car loans aren’t necessarily a scam on their own, you might want to look out for other warning signs a car loan scam like guaranteed approval before you’ve submitted any information or the lender requiring upfront payment. If it looks too good to be true, look very closely at the terms, conditions and application requirements as well as customer reviews and other information about the lender. Only proceed if you’re confident that the financial institution you’re dealing with is legitimate.

    Other alternatives to no credit check car loans

    • Car loans with a cosigner. Bring on a cosigner to help you meet credit and income criteria in order to qualify for better rates.
    • Personal loans with cosigner. Don’t want to risk losing your car? Consider applying for an unsecured personal loan with a cosigner who has strong credit to help you qualify for more favorable rates and terms.
    • Car loans for students. Don’t have a credit score yet? Some banks and private lenders may offer auto loans for students. If so, having employment and getting good grades may help you get approved.

      Bottom line

      A no credit check car loan may be a good option if you have nowhere else to turn and really need a car, but it doesn’t hurt to see if you pre-qualify for a car loan with a better interest rate through more ordinary means of financing.

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