The Difference Between No Credit Auto Loans & Poor Credit Auto Loans

Bluesky Auto Finance offers no credit auto loans and poor credit auto loans through its network of participating car finance companies and auto dealerships. No credit auto loans usually involve younger people with little or no credit while poor credit auto loans are for people that have established credit profiles with a poor credit history. Both types of buyers have difficulties getting an auto loan but for two very different reasons.

No credit? Poor credit? Don’t worry, you could get approved and be driving in under 24 hours! Apply Now

In the case of no credit auto loans, auto finance companies are hesitant to approve a car loan because the borrower has no proven track record in regards to the use of credit. In other words, the lender has no history of payments on which to judge the credit worthiness of the borrower.

For poor credit auto loans, lenders are able to look at a borrower’s prior use of credit. Often times, poor credit history is usually tied to an event such as job loss, illness or divorce and as long as the event that caused the poor credit is behind them, lenders may be willing to give the person a second chance.

People seeking no credit auto loans may be able to get better loan terms than those looking for poor
credit auto loans if they can find someone to co-sign for them. For best results, a co-signer should have a positive credit rating with a high credit equal to or greater than the amount of the applied for auto loan.

If this is the case, people applying for no credit auto loans should have little problems getting approved. Unfortunately, a co-signer will not help people in need of poor credit auto loans however, as mentioned previously, a lender may be willing to give you a second chance car loan as long as the incident that caused the poor credit is behind them.

No credit auto loans can also be obtained without a co-signer if you have a large enough down payment and are looking at buying a car that is reasonably priced. This is true in the case of poor credit auto loans as well. In fact, considering the higher finance costs associated with both of these scenarios, it is ultimately more practical to stay well within your budget by purchasing an in-expensive and reliable car.

Bluesky Auto Finance helps people get instant car financing for poor credit auto loans through its network of direct auto finance companies and auto dealers. Once you apply, you could get approved in minutes and be driving your new or used car as soon as tomorrow.
We hope this information was helpful in explaining the difference between no credit auto loans and poor credit auto loans.