How to get a no credit check car loan

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

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No credit check 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.

Auto Arriba Car Loan

  • Min. Loan Amount: $3,500
  • Max. Loan Amount: $50,000
  • Interest Rate: 8.99% to 29.50%
  • Loan Term: 1-7 years
  • Quick funding
  • All provinces (excluding Quebec)

Auto Arriba Car Loan

Auto Arriba offers car loans starting at $3,500 up to $50,000, with as little as a 30 minute loan turnaround time.

  • Min. Loan Amount: $3,500
  • Max. Loan Amount: $50,000
  • Interest Rate: 8.99% to 29.50%
  • Loan Term: 1-7 years
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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 unfavorable 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 Interest Rate Loan Term Min. Credit Score
LoanConnect Car Loan
4.6% to 46.96%
1-5 years
420
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.

Compare up to 4 providers

Name Product Min. Loan Amount Interest Rate Fees Loan Term Min. Credit Score
Auto Arriba Car Loan
$3,500
8.99% to 29.50%
Contract fee of $499.00
1-7 years
N/A
Auto Arriba offers car loans starting at $3,500 up to $50,000, with as little as a 30 minute loan turnaround time.
Fairstone Personal Loan (Unsecured)
$500
26.99% - 39.99%. Varies by loan type and province
None
6 months - 5 years
N/A
Fairstone offers unsecured personal loans up to $20,000
LendingMate Personal Loan
$2,000
43% (British Columbia and Ontario) and 34.9% (Quebec)
None
1-5 years
N/A
LendingMate offers loans to Canadians with poor credit with no credit checks. Guarantor required for application.
Ferratum Personal Loan
$2,000
18.9% - 54.9%
None
1- 5 years
N/A
Ferratum provides Canadians in need of quick cash with loans for car purchases from $2,000 to $10,000 for 1 year to 5 years.
LoanConnect Car Loan
$500
4.6% to 46.96%
Varies by lender, loan type and province
1-5 years
420
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.

Compare up to 4 providers

What do I need to apply?

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 a no credit check loan:

  • 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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