Decoding the No Credit Check Auto Financing Experience
Excessive dependency on the credit score system keeps a good number of interested buyers away from the used car market. Not that the system is irrational, but its major imperfection lies with the fact that it sees no distinction between people who can afford the monthly payments and those who cannot. The demand from eligible customers brought the no credit check dealerships into business and no matter how popular the auto financing process has become,the concept is still misunderstood. So, here is a short post solely dedicated to the no credit check auto financing process. And a short insight into such dealerships.
What exactly is no credit check?
When you typically apply for a loan for buying any commodity with a financial institution like a bank, your loan application is compared against your credit score provided by FICO along with other documents that are necessary as per the state and federal laws. If your score is above 700 or 750 and your credit report is hiccup-free, the bank will approve your loan request. If it is in the subprime range or anything below 650, your loan application will almost always be rejected.
Now, when you get a car with no credit check,the dealership becomes your financial institution. And they do not lay the same emphasis on your credit score as the banks do. No credit check does not mean that they do not check your credit score or report at all. It simply means that it is not a deciding factor in loan approvals.
What benefits do you get?
• One, you are bound to get financing even when you have bad credit no credit.
• Two, the system of loan paybacks is exactly the same as banks.
• Three, you get the loan without the guarantee of any co-signer to share your risk.
• And four, your credit history does not matter. Your present income does.
However, keep in mind that the above only holds when you search for the best no credit check car dealerships near me and pick the top among them. The policies are unique to the dealership you pick and might not be the same everywhere.
Do you still get quality cars?
Here again, the dealer you choose matters. Ethically, your credit score should not decide the quality of the car that you buy. And the top dealers like the Family Auto sell quality used cars and used trucks in Easley backed by extensive warranties. The no credit check system does not reduce your options to the worst cars in the inventory. If your paycheck can cover it, you can drive out with the costliest vehicle in the lot financed by the dealer with no credit check. Such dealers only take away the involved financial hassles of credit score related to auto financing. Nothing else changes when you go out to shop.
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