Why no credit check car loans have more problems
If you have been rejected for car loans in the past, you may think a no credit check car loan is right for you. But there are many disadvantages to no credit check car loans than meet the eye.
No credit check car loans are often approved with very high interest rates, sometimes in excess of 30%.
Many lenders offering no credit checks require you to place a larger than usual down payment on the car. This offsets their higher risk due to ignoring your credit history.
Almost all of these loans require a security or “collateral.” This means if you cannot meet your repayments, your car or collateral will be at risk of repossession.
Some lenders insist on direct debit payments. Others make this non-negotiable. If for whatever reason you don’t have the funds in your account that week or month, you may end up in dire straits.
Another downside is that the length of your loan may stretch out beyond five years. This makes your loan balance more than the resale value of your car.
Got bad credit? Savvy can help
If you have bad credit and looking for a car loan, Savvy can help. We believe in giving people a second chance at finance.
We have a team of financial professionals and specialised bad credit consultants to help find the right loan for you. With Savvy, you’ll always know exactly what you’re getting.
Unlike no credit check car loans, we can provide 100% finance and insurance options to guarantee you’re covered. Our approval rate is great too - 9/10 applications are approved.
Savvy’s bad credit car loans are among the fairest on the market. We have access to all of Australia’s top car loan lenders and financiers; it’s reason why you’ll get one of the best and most affordable bad credit car loan deals.
If you want to know more about Bad Credit Car Loans and how Savvy can help you, contact us today for an obligation free consultation and quote.