When buying a car, a big concern amongst almost all car buyers is how much the interest rate on their loan will be. And you typically don't find out this crucial tidbit of information until you get approved for the loan.
We recently had a car buyer come to us with a question asking if there were other ways to get a quote on their interest rate.
"My credit score is between 592/596. I have collections from credit cards. Due to my score being so low I do not want a credit check run at this time. I am however trying to get an idea what rate of interest I would have to pay for an auto loan."
There are actually two issues to address here, but let's start by answering the core question: Without a credit check, there is no way for a subprime lender to determine what kind of interest rate you will qualify for. An alternative option for car buyers who are in need of a no credit check auto loan is a Buy Here Pay Here car dealer, but you will probably have to deal with a high interest rate - and it might be more than it would be if you just let a subprime lender check your credit.
Secondly, you may have issues getting approved if you aren't making any efforts to pay off accounts that are in collections. A lender might look at your application much more favorably if they see that you are in the process of making good on bad debts. Also, subprime lenders may look more closely at why you are in your current situation, and that could affect your interest rate positively or negatively.
Can I Estimate My Interest Rate?
Since you cannot get a firm number on what your interest rate will be before approval, many lending websites will have a payment calculator feature that will allow you to get a better idea of what to expect. You can also use this tool to determine what monthly amount would simply be too high to afford.
Working with a Buy Here Pay Here Dealer
These dealers do all of their financing in house - they don't use banks or other third-party lenders to get you financed. Because of this, they look at your job history and income in order to get you approved. However, due to the convenience - and risk - of this easy auto financing method, they will not provide you with the lowest subprime interest rate possible. And these dealers may not be able to help you rebuild your credit since some don't report loans or payments to the credit bureaus.
Getting the Dealer That Helps You Best
At Auto Credit Express, we have connected car buyers across the nation with the dealer who could get them qualified for a car loan with the best possible interest rate. All you need to do to get started is complete the fast and secure online application. Let us connect you with the best dealer for you today.