Do you need a car loan with no credit check? More and more Americans are having to deal with bankruptcies and foreclosures due to the recent credit crisis in the US. But a bad credit score doesn’t diminish our need for transportation does it? If your income is big enough, or you can put up enough collateral, a no credit check car loan might be the solution for you, as opposed to a high risk personal loan.

Depending on your situation, this kind of a loan may actually provide you with lower fees, a more reasonable APR, and generally better terms than normal no credit check personal loans (requiring your credit score on the application).

Banks Will Consider Your Character and Collateral For No Credit Check Car Loans

Before a bank or any other lending institution will consider you for a loan without investigating your credit score, they’re going to want to know your character. This is the only factor they can really consider other than your income and your collateral, and they take it very seriously. The kind of person you are and the way you’ve handled yourself in the past will be a surprisingly big factor in whether you get approved or not. Of course, the more valuable the collateral you can provide, the more comfortable a bank is going to be with you. And even if you’re not the best candidate out there, you should still look at multiple loan providers and compare any quotes you receive.

Many people think the car itself should be security enough for the company offering the loan. The problem with cars is they are not an asset that holds its value or appreciates - just the opposite. That being the case, the bank couldn’t sell the car to pay off the loan you borrowed so they would expect additional assets to protect their investment. It’s the only way they’ll be willing to give you the car loan without looking at your credit report.