Now you can get a car financing with bad credit
Having a bad credit rating is very disabling, and not just for buying real estate. Getting a loan for a car or a traditional personal loan is impossible with a bad credit score. However, there is a solution: find auto financing without a credit check. How to go about it? And where to start?
Several situations can lead a borrower not to have a good credit rating, and yet this does not systematically mean that it is not financeable. This is the case for new residents, who do not yet have a credit rating. People who have used their credit card to the limit exceeded it, or have made numerous requests for credit are also penalized because this type of management affects their credit rating. Finally, borrowers who have not paid their monthly payments or have had items refused also inherit a bad rating, even if they have settled all their arrears.
The organization that lends without a credit check endeavors to verify that the borrower receives sufficient income to repay the new credit in addition to honoring his other commitments. In order to analyze the situation of the person concerned, he generally requests a copy of the last two months of bank statements, and proof of income. You generally need to be able to show that you collect more than $ 1,200 a month, that the account does not show payments without repetitive provisions, several similar loans in progress or a debt capacity used in full. Otherwise, it is better to postpone your loan request until you can submit account statements attesting to a healthier situation.
Finding auto financing without a credit check can seem like a complex process. But once the budget has been defined, the organization selected according to its eligibility criteria and the verification that the requested documents attest to a healthy situation, simply fill in the credit application form, attach the documents to a folder and wait for the response. The agreement can be obtained quickly, sometimes in a few minutes, and funds are generally paid within 24 hours of signing the contract.
Determine your maximum budget
Organizations that lend without a credit check do not attach themselves to the client’s credit rating but analyze their file and, on the other hand, are interested in their loan repayment capacity. They verify in particular that the new loan will not put the borrower in a situation of over-indebtedness before granting the credit.
There are online simulators to determine, depending on the maximum repayment period, the amount of a loan to which one is eligible taking into account current income and expenses. Even if certain organizations accept a debt of up to 40%, it is customary to apply the 33% rule and strongly recommended to stick to this ceiling in order to avoid being refused a loan.
Check eligibility criteria
Not all organizations that make loans without an inquiry operate with exactly the same eligibility criteria. Generally, they all ask for a minimum monthly income of $ 1,200, but are more or less flexible regarding other criteria:
some require income to be paid in the form of direct deposit while others consider case by case when income is paid in cash or by check
a driver’s license is sometimes required
the borrower must show seniority in his current job which generally varies from 3 months to 6 months depending on the organizations
certain profiles such as newcomers, students, CSST beneficiaries, retirees or the self-employed are not accepted everywhere
the maximum number of recent bills without acceptable funds is variable
having loans from similar companies is a reason for the refusal in some organizations.
It is essential to learn about the eligibility criteria of organizations in order to file an application with a lender with requirements compatible with the profile of the borrower.