Is buying a car with no credit check possible? If you have less-than-perfect credit and are in the market for a car, you’ll need the answer to this question—and the answer is yes and no. It’s no if you try to go through traditional dealerships or banks. It’s yes if you visit a buy here pay here dealership.
Buying A Car With A Loan
Traditional lenders look at one thing, and that’s your FICO score. If it doesn’t meet their threshold, which is typically at least 650, then you will not be approved.
Your income doesn’t matter.
Why you missed past payments doesn’t matter.
Their formula is simple: the high credit scores win.
This leaves those with bad credit unable to purchase the car they need, but there is another way.
Buying A Car With No Credit Check
Buy here pay here dealerships don’t punish you for your credit history. Instead, they focus on your ability to pay going forward. You might be wondering…how do buy here pay here dealerships determine my ability to pay with no credit check? The answer is very simple: they verify your income!
In fact, proof of income, a bank statement, and proof of address is usually all you’ll need to get approved for a car loan at dealerships with no credit checks. So, why can a BHPH dealership approve loans when traditional lenders cannot?
One reason is that the dealer is also the lender, so any risk doesn’t involve a third party. That’s why the dealer doesn’t need the approval of an underwriter; all the risk is the dealership’s, so they can lend to anyone they want—and that includes buyers other lenders reject.
Applying for a Loan at a BHPH Dealership
If you’ve ever applied for a loan with a traditional lender, you know the process can be stressful. Filling out a long application, providing several back up documents, and waiting for approval by several people is a hassle—but BHPH dealers make it easy.
Here’s how it works:
- Fill Out a Simple Application: This can be done in person, and many dealerships have the option to fill out the application online.
- Provide Proof of Income: Most BHPH dealers will want to see your last two or three paystubs.
- Provide a Proof of Address: A piece of mail usually does the trick.
That’s it! No credit check, and most loans are approved the same day, so rather than a drawn out process, you can usually take care of the entire transaction in one visit.
Why don’t they do a credit check? They don’t deny loans based on your past credit or your credit score, so pulling the report would be an exercise in futility. Even if your score is 400, you can still qualify for a BHPH car loan.
How to Find Dealerships with No Credit Check
Search for BHPH lenders near you. Once you click on their page, you’ll see whether or not they offer bad-credit loans. If you live near Oklahoma City, Victory Used Cars is a smart choice. Our no-credit-check loans make it easy to get behind the wheel of a quality used car or truck. We’ve helped thousands of people get approved, and we’ll do the same for you.