How to get a no-credit-check car loan | finder.com

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, they can be extra-expensive and might not be worth the price. Consider the alternatives before signing up.

Compare 3 providers that offer no-credit-check car loans

LenderAmountsEligibility
car.Loan.comVaries by lenderMust be a US citizen with a current US address and employed full-time or have guaranteed fixed income.
Go to car.Loan.com's site
CarsDirectVaries by network lenderMust provide proof of income, proof of residence, and proof of insurance.Read review
RoadLoans$5,000 to $75,000Be 18+, monthly income of $1,800+, reside in a state where RoadLoans operates and do not have open car loan with RoadLoans, parent company Santander Consumer USA or Chrysler CapitalRead review

Where can I get a no-credit-check car loan?

The most common place to find a no-credit-check car loan is through a dealership. You can find these directly or by using a connection service like CarsDirect.

Some direct lenders like RoadLoans also offer financing without checking your credit score.

Dealership financing vs. loans with no credit check

Dealership financing is often faster than going with a lender. But unless you shop around, you might not get the best deal out there.

Lenders might not necessarily offer a better deal, but it’s easier to compare your offers by prequalifying. Some car loan providers offer online preapproval, which gives you an offer you can take to a dealership to finance a car or negotiate a better deal.

Should I get a no-credit-check car loan?

It depends on your situation. You might want to consider a no-credit-check car loan if you:

  • Have very poor credit. If your credit score nears the lower end of the scale, you might not necessarily get a worse deal at a dealership versus going through a third-party lender.
  • You need a car immediately. No-credit-check car loans tend to have a fast turnaround time and could be useful if you’re in a real pinch.
  • Don’t have a cosigner. Without a cosigner, your options are severely limited when you have bad or no credit.

Even in these three scenarios, you might still want to consider some of the alternatives. You still might be able to find a better deal with bad or no credit.

What are the drawbacks?

Consider these potential pitfalls before taking out a no-credit-check car loan:

  • Large down payment. It’s hard to get full financing with bad or no credit — which a no-credit-check car loan assumes.
  • High rates. No-credit-check lenders tend to charge all borrowers the same rates, which are typically less favorable than those that consider your credit.
  • Long loan terms. Many no-credit-check car loans have terms over five years. This combined with high rates means you could easily end up paying multiple times your car’s value.
  • Large repayments. Even with long terms, no-credit-check car loans can come with high repayments, thanks to high rates. Use our car loan monthly payment calculator to make sure you’re signing up for something you can afford.
  • Risk of 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 of car loan scams like guaranteed approval.

How do no-credit-check car loans work?

No-credit-check car loans work like any other car loan. The difference is the lender assumes that you have bad credit — possibly worse than you actually have.

These loans tend to have high interest rates and unfavorable terms for you as a borrower, so they should only be used when no alternatives are available.

What factors do lenders consider?

Just because your lender isn’t checking you 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, information about your employer or 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. This also indicates that you’re responsible enough to have a savings, making your application stand out more.

Alternatives to no-credit-check car loans

Before taking out an expensive car loan that doesn’t require a credit check, you might want to consider your other options first:

  • Car loans with a cosigner. Bring on a cosigner to help you meet credit and income criteria or qualify for better rates.
  • Personal loans with a 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? Lenders like Boro offer auto financing specifically for students — and even accept applicants on a student visa.
  • Bad-credit car loans. Even a car loan provider that accepts bad credit might come with more favorable rates and terms than a no-credit-check lender.
  • Apply with a CDFI. Community development financial institutions (CDFIs) are nonprofit banks or credit unions that often offer favorable financing to members of their nearby community — including car loans for people with bad credit.

Compare more car loans for all credit types

Updated August 17th, 2019
Name Product Filter Values Minimum Credit Score Loan Term Requirements
300
Varies by lender
Must be a US citizen with a current US address and employed full-time or have guaranteed fixed income.
Apply with a simple online application to get paired with a local auto lender. No credit and bad credit accepted.
600
Varies by lender
Fair to excellent credit, an income source, US citizen or permanent resident, 18+ years old
Find an offer and get rates from competing lenders without affecting your credit score.
300
Varies by lender
Must be employed full-time or have guaranteed fixed income of at least $1,500/month and be a current resident of the US or Canada.
Get connected with an auto lender near you, even if you have bad credit.
Good to excellent credit
2 to 7 years
Good or excellent credit, enough income or assets to afford a new loan, US citizen or permanent resident, 18+ years old
Quick car loans from $5,000 to $100,000 with competitive rates for borrowers with strong credit.
Fair or better credit
From 2 years
Car must be less than 10 years old with fewer than 120,000 miles. Current loan must have a balance between $5,000 and $55,000 and at least 24 months left in its term.
Lower your monthly car payments and save on interest through a fast and easy online application process.
510
Varies
Income of $2,000+/month, vehicle has less than 150,000 miles and is no older than 8 years, loan balance is between $10,000 and $100,000, debt-to-income ratio is less than 50%
Connect with a network of over 150 lenders to refinance your car loan.
Good to excellent credit
Varies by lender
18+ years old, good to excellent credit, US citizen
Compare multiple financing options for auto refinance, new car purchase, used car purchase and lease buy out.

Compare up to 4 providers

Can I get a car loan with no credit, no cosigner and no money down?

It’s possible, but your options are extremely limited and not very favorable — your best bet might be buy-here pay-here loans from a dealership.

If you have the time, consider building your credit score or saving up for a down payment before you apply.

Bottom line

A no-credit-check car loan may be a good option if you have nowhere else to turn and need a car, but it doesn’t hurt to see if you prequalify for a car loan with a better interest rate first. You can learn more about what your options are by reading our guide to car loans.

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