No loan car loans: bad credit, no problem

If you’re looking for a quick and easy car loan, a “no loan car loan” might be a good option. However, you need to know what you’re getting into with loans of this kind.

No loan car loans – the background

The simple truth is that getting car loans or any other type of personal loan is not as easy as it used to be. Large commercial banks want nothing to do with personal loans, especially with financing new cars. In most cases, people who buy a new car from a dealer finance their loan through the dealership. The trader will most likely charge additional fees to the final result.

What a buyer could experience without credit car loans

If your credit score isn’t perfect, understand that you’re facing a lot of limitations on the type of financing you can realistically get. Lending is a risky endeavor. Now more than ever. The lender evaluates your repayment history. No one wants to lend money to someone who is known for defaulting on loans. Those who do charge more interest and apply more restrictions. More interest means more money will be repaid before you default. How your credit score affects your work ethic is another story. But it’s true. Some employers won’t hire you if your credit is bad.


Collateral is a good negotiating tool. If you have enough collateral, you can buy pretty much anything you want. However, if you have a bad credit history, there’s a good chance you don’t have collateral. A rock and a hard place. Just like when you were a child. You can’t get a job without experience – you can’t get experience without a job! Just as the kind-hearted grocer gave you that first break, there are lenders who are willing to give you a break and help you restore your credit and get collateral.

Dangers of car loans without credit

Beware of wolves wearing sheep’s clothing. There are lenders who exploit people with bad credit. You bet that you may not all be too credit-saving. You count on the fact that you do not know the peculiarities of car financing. You may be asked to pay astronomical interest in exchange for waiving credit check requirements. You could end up making payments for twenty years without ever paying a cent of the capital.

You also have the “title loan”. You set up your car as collateral and agree to repay the loan in the shortest possible time. Usually about a week. This is basically legalized credit hailing. If you borrow $200, you’ll pay back near 3-4 hundred. This can help you buy a second vehicle, but think about it – is a second vehicle really that important? Why not take the bus for a while, save and buy your second or first vehicle without all the extra cost?

Always carefully read the fine print in any type of financial transaction. If a car loan without credit benefits your financial situation without putting you on the rocky outcrop, then go for it.

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wendy encarnacion

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