If you need no credit auto loans then you are likely suffering from a lack of credit or a recent credit fix that has left you with bad credit removed from your report, but no good credit built up.  In this situation, you can get auto credit loans, but there are some qualifications that go along with it, and some options that you should know about. People with no credit have an easier time getting credit than someone with bad credit, contrary to popular mythology, but you’ll still have limited options until you build up a good credit history.

Auto loans for no credit or bad credit are often advertised on television or radio, proclaiming that they will work with anyone, regardless of your bad credit history. While this is true, they really will finance anyone, there are some things that they look at besides your credit history such as how long you have been employed at one job – to make sure that you have job security, and how much you make. They will also make sure that your income isn’t taken up by a lot of debt that you have to pay on each month – called your debt to income ratio (DTI).

These auto loans for no credit will also require a stable home, such as an address that you have lived in for a year or more, as well as requiring that people that get these bad credit no credit auto loan put down a large deposit, or down payment. This is the trick to them financing everyone – with a large enough down payment they truly will finance anyone. If you have extremely bad credit and they consider you a very high risk then they will require around 50% down. This ensures that they get most of the value of the car, plus they will repossess the car if you don’t pay, and therefore costs them basically nothing.

No credit check auto loans also exist in the form of on-the-lot financing.  These auto loans for people with no credit also works if you have bad credit. How they work, is they are financed by the car lot themselves and therefore will require a lot of personal information such as the names and addresses of your friends and family, as well as often requiring that they contact your employer first before they will give you the loan, and verifying a lot of personal information to make sure that they can find and repossess the car if needs be.

However, these type of loans will also require a down payment and it may be fairly expensive as well. However, since these cars on average are around $5000-$10,000 it won’t be huge. Generally, they will require a down payment between $1000 and $2000 dollars, but in some cases they may go slightly higher or lower. However, this is much better than the fifty percent that other car dealerships may charge you on a car loan if you have very bad credit. The downside to on the lot financing is that they will probably not report to your credit and so paying off the car may not benefit you creditwise.