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What Should I Know About a No Credit Car Loan?

A no credit car loan, which may also be known as a bad credit car loan, is offered to people with a bad credit history or people with absolutely no credit history at all. As everyone knows, it is practically impossible to get any kind of loan these days without a stellar credit rating. There are, however, loan companies that offer their products and services to people with less than perfect credit scores. There is a drawback, of course; that is, higher interest rates and less attractive terms. Still, for those with bad credit, this could be the only option. More so, in some cases, bad credit loans can actually be helpful.

One thing that you ought to know about a no credit car loan is that, more often than not, this is only applicable when buying used cars. When buying used cars, you have the option of going to dealerships that only offer secondhand vehicles. You also have the choice of visiting dealerships that offer both brand new and secondhand vehicles. For those looking at no credit car loans, the better option is the dealership that solely deals with used cars.

Another important thing to remember is that while you will be granted a car loan even with bad credit, or no credit, the loan remains a loan. This means that you have to make regular payments and missing out on payments will have adverse results. You also need to make sure that the car dealer offering the no credit loan reports to credit bureaus. This is because you can actually use the no credit car loan to build up your credit history. If the car dealer does not report your loan, it will do you no good.

Featured in Autos