We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it! Show
No credit check car loans in Australia could be an option for you if you have a bad credit history or if you don’t have a credit history at all. If the banks and other traditional lenders have refused your loan applications, it can get difficult to find the financing you need to buy a car. But first, find out what you should know about this type of car loan before you apply as well as how to decide if it's the right loan type for you. How do no credit check car loans work?A lender that approves loans without conducting a credit check will operate under the assumption that you have bad credit. As these lenders can't check your credit history, they base their decision to lend you money on an assessment of your income, liabilities, employment status and current financial situation. The absence of a credit file check means that no credit check car loans can be a more risky proposition for borrowers and for lenders. Borrowers that apply for no credit check loans are higher risk, so no credit check car loan lenders usually impose higher interest rates and require you to pay a larger deposit in order to qualify for a loan. What you need to know about no credit check car loansUnder Australia’s National Consumer Credit Protection Act, lenders must only loan money responsibly, so a credit check before providing financing is usually an important requirement for all responsible lenders. As a result, no credit check car loans are generally not widely available in Australia and many borrowers simply apply for a bad credit loan instead. However, they are technically legal and you can still find providers that will not check your credit as part of the application. As long as the lender is certain that you won’t face financial hardship or struggle to make repayments, they may still be able to offer no credit check financing. The following are some common features of no credit check car loans:
Alternatives to no credit check car loansIf you’ve got a bad credit history, don’t assume that the only option available to you for car financing is a no credit check car loan. In fact, it’s entirely possible to qualify for a bad credit car loan to get the funds you need to buy your next set of wheels. Many lenders specialise in providing financing to borrowers with bad credit, but they’ll conduct a credit check first before agreeing to offer you a loan. Not only can bad credit car loans be a much safer option than no credit check loans, they can also help you improve your credit rating for when you need to access financing in the future. A final option worth considering is to wait until the black marks on your credit file are removed. Check out our guide to credit files to find out how long negative listings stay in your file. You can also take several simple steps to improve your credit rating and enhance your future borrowing prospects. How to improve my credit fileA bad credit history won’t necessarily disqualify you from car loan financing, so it’s worth considering the bad credit loan options available to you. However, if you’re afraid of what a lender will see when they access your credit file, there are a few easy things you can do to get your file into the best possible shape:
Frequently asked questions about no credit check car loansIs a no credit check car loan right for me?Many borrowers opt for no credit check car loans because they are concerned about their credit history. However, bad credit lenders will often still be an option to consider even if you have a few bad marks on your credit file. How can I find a reputable lender?The key to this is research. Make sure the lender has an Australian Credit Licence (ACL) and check independent online reviews from other people who have previously used the lender. You should also carefully read the loan terms and conditions to check that everything is above board. Are there any fees I need to be aware of?Yes. Check the loan contract for details of any establishment fees and ongoing fees that apply as well as how much you will be charged for missing a repayment. How do I compare bad credit car loans?Consider the interest rate, fees, loan term, repayment schedule, regular repayment amount and additional repayment flexibility when comparing loans. Picture: Shutterstock Can I buy a car on finance with no credit?Yes. Lenders are not legally obliged to check your Credit Score before offering you Car Finance, though it's a widely accepted practice to do so. Specialist lenders can offer Car Finance without a Credit Check but may charge higher fees, which will increase the cost of the Finance over time.
What credit score do you need for no down payment car?Not only might you need to have a decent-to-good credit score to secure a no-money-down loan, but having a good credit score (at least 680 points) is also the best way to prevent a lender from increasing the interest rate they would've given you on a conventional loan.
How can I get a car loan with no job and bad credit?Another way to get a car loan without a job is to bring a cosigner. A cosigner like a family member or trusted friend, who has a steady income and a good credit history, can vouch for your trustworthiness and dependability. If your cosigner has an excellent credit rating, it could help you secure a lower interest rate.
How can you get a car with bad credit?10 Tips For Financing A Car With Bad Credit. Get Preapproved With Your Bank Or Credit Union. ... . Avoid 'Buy Here, Pay Here' Deals. ... . Co-sign Your Loan With Someone Who Has Good Credit. ... . Put More Money Down. ... . Consider Less-Expensive Cars. ... . Negotiate On Price. ... . Consider Multiple Offers. ... . Look For A Second Chance Loan.. |