How to get a no credit check car loan

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


Fact checked
Bad credit car loans might be tempting if you’ve been denied in the past. However, no credit check loans can be extra-expensive and might not be worth the price.

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 bad credit — possibly worse than you actually have. You’ll likely end up with:

  • A large down payment. It’s hard to get full financing with bad or no credit — which a no credit check loan assumes you have.
  • High rates. No credit check lenders tend to ask all borrowers for the same rates, which are typically less favorable than lenders who determine your interest rate based on your individual credit history.
  • Long loan terms. Many no credit check car loans have terms of over five years. This combined with high rates means that you could easily end up paying multiple times your car’s value.

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

Compare car loans for all credit types

Name Product Min. Loan Amount Interest Rate Fees Loan Term Min. Credit Score
LoanConnect Car Loans
4.60% to 46.96%
Varies by lender, loan type and province
6-60 months
Get access to 25+ lenders through Loan Connect's brokerage, and receive pre-approval in as fast as 5 minutes, and financing up to $50,000 in as little as 24 hours from the time of your application.
CarsFast Car Loans
4.90% to 29.90%
Varies by lender, loan type and province
12 months - 8 years
Browse thousands of vehicles from dealers across Canada and get matched with financing that meets your needs. Apply online to purchase a new or used vehicle and get the vehicle delivered to your door.
Auto Arriba Car Loans
8.99% to 29.50%
Contract fee of $499.00
6-84 months
Auto Arriba offers car loans starting at $3,500 up to $100,000, with as little as a 30 minute loan turnaround time. Get a free $150 gas card when you apply online and get approved for a loan (while supplies last).
Fairstone Secured Personal Loan
19.99% - 23.99%
Varies by province
3-10 years
Fairstone offers secured personal loans up to $35,000.

Compare up to 4 providers

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

Just because your lender isn’t checking your credit doesn’t mean it won’t consider other factors. Typically you need to provide the following when applying for no credit check car loans:

  • Proof of steady employment. This could include your last few pay stubs, Notices of Assessment from the past couple of tax years, information about your employer and any other job-related questions.
  • Proof of your ability to repay. A lender wants to know you’ll be able to repay the loan, even if you have bad credit. A low debt-to-income ratio will help prove you’re able to handle the monthly payments.
  • 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.

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.
  • Bad credit car loans. Even a car loan provider that accepts bad credit might come with more favourable rates and terms than a no credit check loan.

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

  • Large repayments. Even with long terms, no credit check car loans can 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 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.

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.

Frequently asked questions

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