What Are "No Credit" Car Loans?

No credit car loans are loans offered directly from car dealers that require much less paperwork and hassle. You must understand how these car loans work, but you must also understand what the implications of these loans are if you take them.

No Credit Loans Are Simple
A car dealer that offers no credit loans is giving you the car without accepting a full payment for the car. You do not submit an application, and you do not have to reveal any financial information to the dealer. You agree to make payments on the car with a given interest rate, and the dealer will sell you the car on the spot.

No Credit Loans Are Not Administered By A Bank
When you need customer service for your loan, you must remember that these loans are not administered by banks. These loans are administered by the dealer. The dealer is not a bank. They are not set up to handle your customer service inquiries, and they can only ask you to make payments on your loan. Also, your dealer is likely not in a position to forgive payments or allow late payments. They do not have the assets or cash on-hand that a bank has.

The Payments Must Come In Quickly
Dealerships do not have the time or resources to chase you when you do not make your payments. You must make your payments on time. The dealer will be left with no option but to send your account to a debt collector if you do not pay. The collector will likely have your car repossessed, and you will have a hard time getting the car back. If you are having hard financial times, you must be willing to make this payment on time to avoid trouble.

The Payments Are Non-Negotiable
You cannot refinance your no credit loan with a car dealership. The dealer is already waiting for you to make payments on the car, and they are not in a position to give you a better rate or terms. You must be comfortable with the terms of the loan before you agree to it.

When you shop for a new car, you can get a no credit loan from the dealer. You can avoid embarrassing credit checks, but you must be willing to abide by the terms of the loan. These loans are not flexible, changeable or negotiable in any way.