subject: How To Get Approved For No Credit Check Auto Loans? [print this page] There are many Americans who have bad credit scores, repossession and even a bankruptcy. This makes it difficult for them to avail a car loan. Lenders have understood that credit score problems are going to remain for some more time. So, they now offer several auto financing options to borrowers with trouble credit history. No credit check auto loan is one such car loan.
How to Increase Your Chances of Getting Guaranteed Approval on No Credit Check Auto Loans?
Collateral
When lenders are ready to overlook your bad credit score and ignore your credit history, they are taking a big risk. They want to secure their investment.
Now, the car that you are buying will be used as collateral. But, the lender may require additional collateral. This is because the value of a car depreciates over time. You can use your house, another car or boat as collateral. By doing this, you will substantially lower the lenders risk and improve your chances of getting a no credit check car loan. You will also be able to negotiate the terms such as rate of interest, repayment period, etc. in a better way.
Employment
Good credit scores project better financial capacity of repaying the car loan. A bad credit score means you have missed payments in the past. Repossession or a bankruptcy can also be the cause of bad credit. All these things make you a high risk borrower. In such cases, having a stable source of income can do the trick. You will have to show income proof with the help of recent pay stubs. The lender may also require an Employment Certificate.
By convincing the lender that you have a stable job, you will increase your chances of approval.
Down Payment
A hefty amount of down payment can also help you in getting approval for no credit check auto loans. When you put money down, the lender feels secured about the remaining loan amount and so, he offers lower interest rates on your car loan.
A no credit check auto loan is a real boon for credit borrowers who dont have a good credit history. All these factors can help you get instant approval on the car loan. Remember these important factors before you fill the application form.
All the best!
by: Alan Hendricks
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