The Downside of No Credit Check Approved Auto Loans

Bad credit buying choices

One of the things that most surprises us is that many car shoppers with bad credit still think their only choice for poor credit car loans is a tote the note dealer.

This continues to be the case even after nearly two decades involvement in bad credit auto sales here at Auto Credit Express.

For this and other reasons we even created a web site that goes into detail about terrible credit auto loans so people can avoid buy and pay here dealers while understanding the choices that often lead to repossession.

This means showing them why a no credit check car loan, although easier to qualify for, will not help as much as bad credit auto loans where the lender will run a credit report on you.

What are no credit check car loans?

A no credit check auto loan is something that doesn’t require a qualifying FICO score or a check of your credit in order to get approved. Since the lender doesn’t care about credit scores, even if your credit history is really bad you can be instantly approved.

While loans like this are easy, there are a number of things to consider before applying for one of these “tote the note” loans:

•    Large down payments – Dealers typically require a down payment that’s at least equal to the cost of the car (to cover losses in case the borrower skips out before making the first payment).