An auto loan with no credit check can be obtained with bad credit or no credit at all.  Car dealerships, known as “buy here, pay here” dealers are willing to work with people who have poor or no credit, often without the need for a credit check.  While this may sound perfect for your situation, keep in mind that you will likely pay an outrageous interest rate on these types of loans.  That said, when you need a vehicle, you need a vehicle.

Buy Here Pay Here

You can find buy here, pay here dealerships by searching on-line and in your local newspaper.  Look for those dealerships that call themselves “buy here, pay here”, and offer “bad credit auto loans.”  Most dealerships who offer these types of loans will advertize this service and are good places to begin your vehicle search.

Once you have found a dealership that specialize in the type of loan you are looking for, remember that buy here, pay here dealerships become both your banker and the seller.  The dealership will likely require proof of income in the form of paystubs, proof of time at your residence, and references if available.  If you are able to come up with a bit of a down payment or a co-signer, your chances for approval will increase.  The dealer will look at your income, ability to pay for a vehicle, and then give you an approval amount. You will then go “shopping” on the dealers lot to choose the car that fit’s into the finance amount you have been approved for.

Keep Your Payments Low

Before we continue, remember that you will be paying an extremely high interest rate. You need to choose a reliable, but in-expensive vehicle that will keep your payments as low as possible.  Once you choose your car, you will then be required to make the auto loan payments directly to the auto dealer with whom you purchased your vehicle.  The payments can be monthly, weekly, or bi-monthly, depending on the policy of the dealership and what arrangements they are willing to work out with each buyer.

It is important to note that you will not be able to purchase the vehicle of your dreams under the scenario of purchasing at a buy here, pay here dealership.  You are getting into a vehicle without having a credit check and are also building or re-building your credit score.  Make sure to ask the dealership to report your payments to the credit bureaus.  It is one of the best ways that you can build up your credit score so that the next time you purchase a vehicle, you can get your dream car and a low interest rate.  Until then, if you want to avoid dealing with credit checks and credit reports, begin your search for auto funding at buy here, pay here dealerships who can get you in a vehicle.

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