No Credit Check Auto Loan Info
Large down payments are often required by small used car lots that offer onsite financing, but a no credit check auto loan normally does not mandate a specific percentage. In fact, many loans have very little restrictions and are based on the value of the actual vehicle. If the vehicle is worth less than the purchase price, a down payment may be required. If the vehicle is being purchased at or near its value, there may not actually be any down payment at all.
Things Required to Apply for A No Credit Check Auto Loan?
1. Pay Stub
A pay stub is often one of the most important items requested by a no credit check auto loan provider because it establishes a work history and also proves whether a sufficient income is present to repay the amount borrowed. Most lenders will request that the pay stub is the most recent, but all will require that it be dated within the last 30-45 days. If an individual has less overtime or less pay on the most recent paycheck, it is never a bad idea to offer several other stubs in addition to help estimate the average monthly income.
2. Driver’s License
Lending laws and guidelines require a borrower to be identified in conjunction with the Patriot Act, but contrary to popular belief a social security card is not mandatory. Any state issued identification, such as a driver’s license, will fulfill the requirements.
3. Proof of Insurance
As with traditional lenders, no credit check auto loan providers need to be able to verify that the vehicle is insured. The individual requirements such as the deductible will vary from company to company, but many will not allow deductibles higher than $500. Both liability and comprehensive auto insurance are required and must be retained until the loan is paid off in full. Few people realize that if they cancel their coverage the lender can purchase insurance on their behalf and add it to the cost of the vehicle.
4. Personal References
Most lenders that offer no credit check auto loans would like to see several personal references on the application. Because the companies offering these types of loans do not check credit scores or histories, the references provide another potential contact should they ever need to get in touch with the borrower.
5. Credit References
Some no credit check auto loan providers will require several credit references on the application, but these are easy to provide. Most landlords or utility providers are more than happy to offer a letter that verifies a payment history or relationship in good standing. If no credit references are available, an applicant can often just add several more personal references to the application.
Read more about no credit check car loans here.
