Auto Loans for Bad Credit with Instant Approval & No Credit Check, does that exist?
Has your old car driven its final mile? Do you need a new one to get to the office each day? Are you moving out on your own, and must purchase a new automobile immediately? There are many situations where you may need to buy a new vehicle right away, whether or not you have ideal credit. Thankfully, it is possible to buy a car now with a bad credit auto loan.
Can You Get a Guaranteed Auto Loan with Bad Credit with Instant Approval?
While looking for quick car loans, you may have seen websites promising “guaranteed” or “instant” approval for auto loan applications, regardless of credit. It is important to know that no lender can responsibly “guarantee” that you will qualify for a loan. They must approve you based on whether you can afford to pay the loan back.
But there is a solution…
You should not feel discouraged by this fact. Many companies online specialize in offering bad credit auto loans. So long as you meet the income requirements, you are likely to be eligible for a loan. Depending on the website you apply at and how early in the day you are able to submit your application, it may be possible to qualify for a same-day car loan.
You also may be told instantly when you submit your application whether you are likely to be approved. This will allow you to breathe easy as you wait to complete the final paperwork which is required to disburse your funds. These can be sent out to you via direct deposit.
Below we have listed services that accepts really low credit scores, and in some cases only verifies your income (minimum $800 / month income before tax)
Auto Loans for Bad Credit with really low credit score
What Do You Need to Apply for an Auto Loan?
You now know that you do not need perfect credit to apply for an auto loan. So what requirements do you need to meet? Here is what at a minimum you will have to provide for approval:
- Your basic information and proof of your identity.
- Proof of your insurance.
- Income verification documentation.
- Proof of residence.
You also will need to be able to provide information on the vehicle that you will use the bad credit auto loan to purchase. If you have not selected a vehicle, do that before applying for auto financing.
When you request bad credit auto loan quotes online, you do not need to provide your documentation right away. You just fill out a quick form with your basic information, and find out whether you may qualify for a loan.
Types of Bad Credit Auto Loans
There are two main types of bad credit auto loans:
- Secured: With this type of bad credit auto loan, the financing is secured by collateral. Generally, that collateral is the automobile that you are purchasing with the loan.
- Unsecured: This type of auto loan is not secured by collateral. Also called no money down auto loans.
While we connect borrowers with both types of loans here on our site, our focus is on helping you to find an unsecured auto loan.
Can You Get an Auto Loan With Bad Credit? (Yes)
Easy car loans with bad credit do exist. Sometimes they are called “second chance auto loans.” Car dealerships sometimes offer them, as do online lenders. In fact, the widest selection of bad credit auto loans are available online, including horrible credit car loans. While interest rates do tend to be higher for customers with lower credit scores, you can find some surprisingly competitive loans if you are willing to compare offers.
Should You Apply for a Bad Credit Auto Loan Online or at a Dealership?
There are two possibilities for where you can apply for a bad credit loan to purchase a vehicle. Either you can do so at a local dealership, or you can do so online. Both locally and online, you do have options. Locally, you can obtain a loan through any of the following:
- Bad credit no-money-down dealerships (often “buy here, pay here” establishments).
- Unsecured bad credit loan dealerships.
- Used car dealerships with no credit check car loans.
While it may seem convenient to go to a local dealership, applying for a bad credit auto loan online offers you a few benefits over these options:
- Unlike with a “buy here, pay here” local dealership, you can purchase your vehicle from anywhere. This gives you more possibilities, and provides you with access to vehicles that are in better condition than you might find at a local dealership.
- Online, you are less likely to have to deal with prepayment penalties.
- With an online lender that runs an alternative credit check (which won’t harm your score) instead of no credit check, you know you’re dealing with a company that is following responsible lending practices.
- Applying online, you have a wider selection of lenders to choose from. You can get numerous quotes in a matter of minutes and compare them to find the loan with the most competitive interest rates and the most favorable terms.
- It could not be faster or easier to apply for a bad credit auto loan than it is to do so online in the comfort of your own home.
Quick Tips for Raising Your Credit Before Applying for Fast Car Loans
You should expect high interest auto loans for bad credit, especially if you opt for an auto loan for bad credit with no cosigner. The reason for this is that lenders need to protect themselves. They know that higher-risk borrowers are more likely to default on their vehicle loans. So to mitigate that risk, they charge more interest.
That is why it is wise to try and boost your credit score as high as possible before you apply for a bad credit car loan. This may help you qualify for more competitive interest rates. Even with limited time, you may be able to improve your score more than you expect.
Here are some fast actions to take:
- Sign up for free services like Experian Boost. Doing so will incorporate your utilities bills into your credit score, and may result in an immediate improvement.
- Check your credit report for errors and contest any entries you spot which are incorrect.
- Call creditors and ask if they are willing to forgive one-time offenses by expunging them from your record if you are now up-to-date on your payments.
- Pay off debts that you can and reduce credit utilization.
- If you are behind on any bills that you can catch up on now, do so.
Anything you can do to increase your credit score before you submit your applications could help to save you a significant amount of money as you are paying off your auto loan in the future.
Apply for an Auto Loan with Bad Credit Now
Your transportation needs are not going to wait for you to have a perfect credit score. Thankfully, you do not need to. You just need to locate a lender that is willing to work with you. To find a competitive, unsecured bad credit auto loan now, scroll back up to our table and click on any of the links. Apply in minutes and find out right away if you are potentially eligible for a quick auto loan.
