Finance arrangements are by far the most popular way to fund buying a new car. Across the UK, people rely on loans and finance deals to help make upgrading to your next vehicle that bit easier.
It means that you don’t need to pay out a large sum of money to begin with by covering the costs of your vehicle as manageable and simple monthly repayments. Getting a finance deal is an excellent option for most car buyers – but not everyone can actually have their application accepted.
Car finance deals aren’t always available to everyone. Why is this? Well, you must pass a credit check, performed by your potential lender, in order to have an application accepted. This makes no credit check car finance agreements incredibly enticing for many drivers who don’t have a spotless credit history. A credit check can be a huge obstacle to overcome for many drivers.
Whether you have a poor credit rating or no credit rating at all, it can be difficult to persuade lenders to accept your application and loan you the money to finance a new car.
Who needs no credit check car finance?
A no credit check car finance deal is perfect for anyone who has a poor credit rating or credit history, or who has struggled to meet repayments in the past. Many things can negatively affect your credit rating, and things stay on your history for a long time – but it can be equally as difficult if you have zero credit history at all.
For young drivers who are getting one of their first cars, it can often be the case that they haven’t actually begun to build up much of a credit profile, making the act of persuading a lender even more difficult. Also, people who have an IVA or CCJ, have faced bankruptcy, or who are currently under a debt management plan (DMP) can find a no credit check finance deal incredibly beneficial.
Why is this? Well, a credit check can actually negatively affect your credit profile. Too many credit checks is a bad signal to potential lenders, and too many loans or declined loans can also tell creditors that you are in financial difficulty.
So can I actually get a no credit check finance deal?
Unfortunately, it’s not quite as simple as that. Lenders aren’t able to provide no credit check car finance entirely. However, specialist lenders such as do offer a two-step process to credit checks that helps to remove many of the negative implications of a credit check.
By performing a soft credit check first, specialist bad credit car finance lenders can take a look at your credit profile and your potential eligibility for a deal without actually affecting your credit rating.
A soft credit check won’t appear on your credit history, making it a safe way for you to find out how likely you are to be accepted before actually applying for a car finance deal. If the soft credit check goes well, you’ll be subject to a hard credit check – but with the confidence of knowing that your soft credit check went well.