Consumer Car Buying Advice Blog

Here at Auto Credit Express, we are often asked to compare no credit check car loans with other types of bad credit car loans. Here is the difference…

No Credit Check Car Loan

A no credit check car loan is a loan that doesn’t require any kind of credit history in order to be approved. Other names for this type of loan are “buy here, pay here” and “tote the note”. Since the lender doesn’t check your credit, you are automatically approved for a car loan. Sounds great, doesn’t it?

What’s the catch?

Since we all know that there is no free lunch, there are a number of things to consider before you take out one of these loans.

• The down payment will be high. In order to stay in business, the car dealer will require a down payment probably equal to the cost of the car (to cover losses in case the borrower skips town before the first payment is due)
• The interest rate will be high. Interest rates on these types of loans start at 25% and go up from there.
• The car will be an older used car. If you’re lucky it will be reliable. If not, you will be paying repair costs in addition to your monthly payment. If you fail to make the payment, the car will be repossessed and you will still have to make the remaining payments (remember, the vehicle cost to the dealer was covered by the down payment – anything the dealer makes above that is profit.
• Even if you make your payments on time, your positive payment history will not be reported to the credit bureaus – it’s too much work for the dealer.

The Bottom Line

No credit check car loans are not a good idea – especially if you are serious about establishing good credit. At Auto Credit Express, we have helped thousands of people with bad credit get a new or reliable low mileage used car. More importantly, we have started these people “on the road” to reestablishing a good credit history. We make no promises in regards to guaranteeing you credit. However, we do work with the best special finance departments across the United States, placing you with a dealer that not only knows special finance, but one that is as close as possible to where you live. Our loan calculator will give you a reasonable idea of what you can afford and we have live operators who can answer any additional questions that you might have.

Fill out an application in the comfort and privacy of your home

Why spend the time and the money driving from dealer to dealer when you can fill out an application online? Simply go to www.autocreditexpress.com to begin the process. Our application is SSL secured to safeguard your privacy and we are an accredited business with the Better Business Bureau. Our address, along with a toll free number, is listed at the bottom of the page. So if you think you’re ready to begin a new chapter in your credit history, go to our website at www.autocreditexpress.com and get started.

This entry was posted and is filed under New Cars. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.