How Can I Finance a Used Car with No Credit Check?

Get Car Financing
Even with poor credit.

By

Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.


, - May 30, 2018

When you have bad credit, your best choice is to take out a bad credit auto loan from a subprime lender. But these lenders will run a credit check. So, in order to finance a used car with no credit check, you’ll need to visit a buy here pay here or tote the note dealer.

Buy Here Pay Here Dealerships

Buy here pay here (BHPH) dealerships, also known as in-house lenders, typically don’t run your credit to approve financing. When you go to a BHPH dealer, you’ll be able to sign the loan papers and drive off with your vehicle. Instead of doing a credit check, they’ll use your income for the approval.

When you visit one of these dealers, make sure you have your most recent pay stub to show the finance manager. Once you sign the papers and drive off, you’ll normally be required to pay weekly or bi-weekly – usually in person. If you don’t pay, the dealer can report any missed payments to the credit bureaus, or worse, repossess the vehicle.

You’ll also need to be aware that the cars from these lots won’t be brand new, and will be sold “as-is.” This means the vehicle’s price doesn’t include a warranty to cover any major, unexpected repairs. If you want coverage, you’ll need to purchase an aftermarket service contract.

Because these vehicles are older, they’ll generally come with higher-than-average miles that could top 100,000. This isn’t necessarily a bad thing, and you should be more concerned about the vehicle’s title status and current condition. If a vehicle comes with a salvage, rebuilt, or branded title, make sure you run a vehicle history report and have it inspected before buying. Just because the vehicle looks good on the outside doesn’t mean there aren’t hidden issues that need to be addressed.

Bottom Line

If you’re in need of a car fast, a buy here pay here dealer can be a viable option. The downside is that your credit won’t improve over time if you do finance with one of these dealers because most don’t report loans or payments to the credit bureaus. If you’re looking for a special finance dealer who can work with you and help build your credit, but don’t know where to start, let CarsDirect help.

We work with a nationwide network of special finance dealerships that are capable of helping borrowers with imperfect credit. We'll work to match you with a dealership in your area when you start the process by filling out our secure auto loan request form online.

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Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.


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