3 Best Alternatives to No-Credit-Check Auto Loans in 2021

The reason why so many people are afraid of credit inquiries is that they tend to slightly lower one’s credit score. In addition to this, having bad credit lowers your chances of approval. This is why some people look for no credit check auto loans.

However, it is next to impossible to find a lender that will allow you to finance a car with no credit check whatsoever. This is why we have reviewed lending platforms that perform a soft inquiry first, to present you with loan offers.

A soft inquiry won’t affect your credit score, so that way you will be able to compare loan offers before you proceed with the application process.

Here are the best alternatives to no credit check car loans.

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Top 3 Alternatives to No-Credit-Check Auto Loans for 2021

1. Car.Loan.com

The Car.Loan.com platform is one of the best alternatives to no credit check loans. The loan amount range is decent, the minimum credit score is not an issue, and it’s possible to apply with a co-signer. Full Review

  • APR: 0-25%
  • Loan Amount: $7,500 to $45,000
  • Loan Term Length: 3-6 years

The Car.Loan.com platform is one of the best alternatives to no credit check loans. The loan amount range is decent, the minimum credit score is not an issue, and it’s possible to apply with a co-signer. Full Review

2. myAutoloan

myAutoloan should be on the radar of everyone looking for bad or no credit check auto loans. The acceptance of co-signer application allows even those with no credit to be accepted for a decent auto loan, thus financing their personal vehicle. Full Review

  • APR: 1.79-27%
  • Loan Amount: $8,000-$100,000
  • Loan Term Length: 2-7 years

myAutoloan should be on the radar of everyone looking for bad or no credit check auto loans. The acceptance of co-signer application allows even those with no credit to be accepted for a decent auto loan, thus financing their personal vehicle. Full Review

3. Auto Credit Express

The Auto Credit Express is a platform with an extensive network of connections. As such it can put prospective borrowers and customers in contact with the best auto dealerships and lenders. Full Review

  • APR: 3.99-29.99%
  • Loan Amount: From $5,000
  • Loan Term Length: 3-6 years

The Auto Credit Express is a platform with an extensive network of connections. As such it can put prospective borrowers and customers in contact with the best auto dealerships and lenders. Full Review

Best No-Credit-Check Car Loan Alternatives in 2021

Car.Loan.com Best for joint applications
myAutoloan Best for low rates
Auto Credit Express Best for bankruptcy auto loans

Detailed Reviews

Car.Loan.com
Car.Loan.com

BEST FOR

joint applications

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  • APR: 0-25%
  • Loan Amount: $7,500 to $45,000
  • Minimum Credit Score: Not disclosed
  • Loan Term Length: 3-6 years
  • Origination Fee: Varies by lender
  • Funding Time: Not disclosed
  • Credit Check: Soft credit check to compare offers

The Car.Loan.com platform should be the first stop for those looking for an alternative to the best no credit check auto loans with a co-buyer option. This is a major relief for those who don’t have high enough income. The platform itself has existed since 1994, which gives it a decent level of credibility. It also gives peace of mind to people who are afraid of potential scams.

The main reason why so many people are drawn to Car.Loan.com, in the first place, is because of its very lenient policy regarding applicants’ financial history. Poor credit score, too short credit history, or a recent bankruptcy would be enough to disqualify an applicant in an instance. With Car.Loan.com, this is a minor inconvenience that may only result in slightly worse terms. While credit checks are impossible to avoid, it’s as close to no credit check loans as it’s possible to get in today’s market.

Loan requirements

The minimum credit score for the Car.Loan.com platform is not disclosed, and the pre-application process is fairly hassle-free.

The applicant needs to be at least 18 years old, and the same goes for any potential co-borrower. They also have to be a US citizen. While the minimum income isn’t a hard requirement, having more than $1,000 per month can help one get a better APR. Most importantly, the vehicle in question shouldn’t be older than eight years.

Loan Terms

APR: Cars.Loan.com facilitates no credit auto loans with an APR between 0 and 25%. In theory, those with no credit history or recent bankruptcy would get the worst end of this.

Loan Amount: Borrowers can hope to get between $7,500 and $45,000 from Cars.Loan.com. The figure isn’t ideal, seeing as how some borrowers may hope for a lower minimum amount for a cheaper car. Still, the sum is still more than acceptable for the majority of borrowers.

Loan Term Length: You’ll be able to set the term length anywhere between 3 and 6 years. For those who are the most diligent, this car loan can potentially be used to improve their credit score.

Origination Fee: The origination fee varies by lender, but you can expect it to range anywhere between 0% and 5%, depending on your creditworthiness.

Funding Time: After you submit your application, a representative will call you to discuss the offer within 24 hours, or even minutes!

Credit Check: The platform provides its potential applicants with a soft credit inquiry option at the start of the application. The lender may perform a hard credit pull only during the actual application assessment stage.

Repayment: As Car.Loan.com is just a platform, specific terms depend on the lender. In general, you can expect not to have to pay an early payment fee. Moreover, this platform for auto loans for people with no credit has its own calculator, which makes the whole process even more dependable.

What We Liked and Didn’t Like About Cars.Loan.com

As we’ve mentioned, the first major selling point of the Cars.Loan.com platform is its joint application option. This means that you can still have someone cosign a loan and improve your odds of getting better terms on your loan.

The application is simple and short, which makes it simply ideal for first-time borrowers, and the approval is quick as well. You can have the loan approved in 30 minutes. This can help you act quickly and proceed with the car-buying process.

People who have filed for bankruptcy or don’t have a long enough credit history in order to have a credit score are most in the need of no credit check car loans. And they would be happy to hear that they still have a chance as this platform is a good alternative.

However, the information provided at the site is relatively scarce, which means that prospective borrowers have to initiate the application process in order to get information about specific terms.

Like with any other loan for poor or no credit history borrowers, the APR will usually be quite high. In fact, for the above-listed post-bankruptcy applicants, the APR is likely to be as high as possible. Still, for people with no other options, this may still be acceptable.

myAutoloan
myAutoloan

BEST FOR

low rates

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  • APR: 1.79-27%
  • Loan Amount: $8,000-$100,000
  • Minimum Credit Score: 575
  • Loan Term Length: 2-7 years
  • Origination Fee: Varies by lender
  • Funding time: 24 hours after approval
  • Credit Check: Soft credit check to compare offers

While it is true that myAutoloan often gets described as bad and not a no-credit loan, with the help of a co-signer, it can be a good alternative for those looking for a car loan with no credit checks. Provided that the co-signer has a good enough credit score, the borrower may even get a decent APR, which is the main reason why so many people go for myAutoloan in the first place.

Even though myAutoloan mostly focuses on car financing, the refinancing option is just as popular. Due to potentially low APR and a chance to get a co-signer to vouch for them, some people may use this opportunity to build or fix their low credit score.

Loan requirements

The minimum credit score for myAutoloan car loan is 575. However, even below this credit score or without a credit score (due to short credit history), it’s possible to get a loan with the help of a co-signer.

An average monthly income ($1,500), social security number, and the legal age of 18 are required. When it comes to the vehicle itself, myAutoloan review has some well-defined guidelines. First of all, the vehicle mustn’t be older than 10 years. Seeing how the vehicle’s age (and state) is usually determined in mileage, the top range is at 125,000 miles (or 120,000 miles for private party loans).

Loan Terms

APR: The APR depends on the lender that can go as low as 1.79% is definitely the strongest selling point of myAutoloan platform. Still, a good co-signer would makes a world of difference, as the APR can be as high as 27%.

Loan Amount: The amount has a decent range between $8,000 and $100,000. The minimum of $8,000 may be a bit too high for the needs of some borrowers.

Loan Term Length: Depending on the loan amount and your creditworthiness, you’ll be repaying this loan between 2 and 7 years.

Origination Fee: Same as the APR, the origination fee depends on the specific lender. In general, lenders charge between 1% and 5%, which is pretty standard for the industry.

Funding Time: The application process is relatively fast. In other words, it all depends on the application verification process. As soon as the application is approved, the money can be deposited within 24 hours.

Credit Check: The credit pull process for either the applicant or co-signer is also standard for auto loans. First, there’s the soft inquiry in the pre-qualification stage. In the next stage (just before the potential approval), the platform performs a hard credit inquiry.

Repayment: Make sure the lender you sign a loan agreement with has repayment terms that suit you, as they can vary significantly. It’s likely you won’t have to pay an early payment fee, but you don’t really have to rush with the repayment if you get a decent APR.

What We Liked and Didn’t Like about myAutoloan

The single biggest advantage of getting a car loan via myAutoloan is the potentially low APR. It allows borrowers with no credit score or history to pay the absolute minimum in interest rates.

The application process is beginner-friendly and usually lasts between 2 and 3 minutes. Other than this, the site is quite informative, and there are some tools that can help one come to terms with all the specifics of the loan in question.

For those looking for a car loan with no credit checks that they plan to use for refinancing, it probably doesn’t get any better than this.

The biggest downsides are restrictions on the loan amount and the car itself. The age and mileage of the car have to meet specific criteria, and the minimum loan of $8,000 can be too high for some people.

Moreover, due to the popularity of this platform and the number of users, a borrower can expect multiple offers by various lenders with different loan terms. This can be a problem for those who are looking for a simpler lending process.

Auto Credit Express
Auto Credit Express

BEST FOR

bankruptcy auto loans

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  • APR: 3.99-29.99%
  • Loan Amount: $5,000 - Maximum not disclosed
  • Minimum Credit Score: Not disclosed
  • Loan Term Length: 3-6 years
  • Origination Fee: Varies by lender
  • Funding Time: A few days
  • Credit Check: Soft credit check to compare offers

Auto Credit Express is a platform that serves as a lending platform and a car dealership network hub. In other words, it has all that one needs to A) fund the vehicle, and B) find the vehicle to fund. For those who have recently undergone bankruptcy, this is one of the best alternatives to getting a car loan with no credit check.

Auto Credit Express also offers some special deals to military personnel, be they active duty, reserve, or retired. Members of the armed forces can find it easier to get approved and receive some additional benefits. They can get lower interest rates, discounts, and more favorable payment terms.

Loan requirements

While Auto Credit Express doesn’t insist on a minimum credit score, it does insist on a minimum monthly income of $1,500 and at least three years of work experience. This is probably the most problematic requirement for the majority of bad or no credit borrowers. Lastly, the applicant needs to be older than 18 and be a permanent resident of either Canada or the US.

Loan Terms

APR: The APR ranges from 3.99% to 29.99% – standard for the industry.

Loan Amount: The minimum lendable amount offered by lenders in Auto Credit Express’ network is $5,000. While there’s no stated maximum, there are lenders who will offer up to $100,000.

Loan Term Length: The loans will have to be repaid within 3 to 6 years, depending on the specific lender. Of course, if it’s rent-to-own, the loan term can drop to between 1 and 3 years.

Origination Fee: As with all lending platforms, the fee depends on the lender and the creditworthiness of the borrower. Most lenders follow industry standards, so borrowers can expect to pay between 1% and 5%. Of course, people with poor history can expect to pay close to the maximum amount for their car loans.

Funding Time: The application process lasts 3 minutes, and it usually doesn’t take long for the loan to be approved or rejected. From the moment of approval, the funds will become available in a few days.

Credit Check: As expected, the platform will perform the soft credit pull during the pre-approval process. Later on, while assessing one’s financial credibility, the platform will start a hard credit inquiry.

Repayment: There is no early repayment fee, and the available option of autopay makes the repayment process into something simple and dependable.

What We Liked and Didn’t Like about Auto Credit Express

The first major advantage of Auto Credit Express as a platform that facilitates auto financing is the willingness to work with anyone. This means that their credit history or recent bankruptcy won’t be major obstacles.

Next, the platform connects clients with lenders and car dealerships. This helps prospective borrowers to find both financing and the vehicle on the same platform.

The qualification requirements are quite minimal. The monthly income and work history length are requirements that the majority of borrowers would fulfill either way.

Provided that one doesn’t have a great credit score, they might not get the best APR. Still, for people looking for no credit check vehicle financing, the focus is usually on approval, not on getting the ideal terms.

There is a requirement that you work with a dealer in their network, which might slightly limit your choice of vehicles. Nonetheless, the network is quite broad, which should leave you with enough options.

Buyer’s Guide: How to Get a Car Loan with No Credit?

When getting an auto loan for your own situation, you need to put the lists of all your strengths and weaknesses (finance-wise) on paper. Sure, you may have no credit history, in which case, it might seem logical to look for no credit car loans. You would be surprised to find that there are a lot of lenders who won’t insist on it. Still, it might be more cost-effective to look for a lender that allows a co-signer instead.

Also, make sure to pay closer attention to the vehicle that you’re purchasing, as it can affect the loan terms you get from the lender. With auto loans, the APR is not determined just by your credit score and your income; the vehicle itself also plays a significant role in the process. Some lenders may even outright refuse an application if the vehicle you intend to buy is above a certain age or mileage.

Finally, keep in mind that every installment loan is an additional monthly expense. So, make sure to do your own calculation and see whether your household budget can take it.

Wrap Up

In the end, it’s worth noting that these platforms merely connect the borrower with a suitable lender and, for this to work, they need to check the borrower’s profile. Nonetheless, this process is a good alternative for people with bad or no credit, as they can compare potential offers prior to applying.

FAQ

What is the best auto loan company for bad credit?

This varies depending on your requirements. For instance, myAutoloan can be called the best bad credit or no credit car loans platform due to its low rates. However, it doesn’t offer loans smaller than $8,000 and has restrictions on some vehicles. Auto Credit Express has a great offer for the military personnel, but that doesn’t mean much to those who aren’t in the military or haven’t served. Car.Loan.com has a good all-around offer but a relatively low maximum loan amount.

Can you finance a car without a credit check?

While many companies offer “no credit check car financing,” they shouldn’t be taken at face value. The phrase ‘no credit check’ usually means that the applicant won’t be turned down due to their score during the credit inquiry. The lending platform will still offer a free soft credit pull option for the pre-qualification and perform a hard credit inquiry during the application verification stage. Some dealerships may provide a no credit check loan, provided you meet the income requirements.

Can you get an auto loan without credit?

The short answer is yes. Some platforms specialize in offering special terms to people who have recently undergone bankruptcy or have a credit history that is too short for the majority of conventional lenders. While it’s impossible to avoid a credit check once you actually apply for a loan, picking companies that offer the best alternatives no credit check auto loans will minimize your odds of getting rejected. Of course, unless you have a cosigner, it’s unlikely you’ll get good terms.