No Credit check car loans are loans applied without referring or considering the consumer's credit history. As the name implies, it is an ultimate boon for people with bad credit history.
There are various no credit check car loan options available in the market. It is always prudent to compare the different lenders and then select the best deal available.
These no credit check car loans do not peek in to the consumer's credit history. They only look out for collaterals provided by the applicant and character of the applicant.
The car for which the loan is applied for itself is the best valuable collateral. But as is the case with any consumer goods, the car will depreciate in value over the coming years.
So this will require additional collateral to be provided to offset the value of the loan taken. The additional collateral can be a property owned or any other valuable asset. The only criterion is that it needs to be proved that the applicant owns it and should be able to provide valid documents to prove so.
But whatever collaterals are provided, it is important to take note that, any default in the repayment of the loan will only cause the said collaterals to be claimed and taken in to possession by the loan lender.
Next on the list is a good character. Now a good character here implies only a good financial character. The car loan lender will need to make sure how probable it is for the applicant to repay the loan.
A good financial character can be proved by showing a proof of steady income and long history of steady employment, significant amount of income and also proof of payment of certain accounts. This proving of a good financial character is highly significant because it entails lower rate of interest on the car loan.
Checking the competitive rates in the market will help in getting a fair deal. There are many online websites offering quotes or even broker sites are abundant who will collect the applicants request and send back all relevant information. It is very important for the applicant not to forget to mention on the inquiry forms that he or she is looking out only for no credit check car loans. Because there will be a significant difference between the rates charged for applicants with credit check and those charged for applicants requesting a no credit check car loan.