Could no credit check car loans be a good option for you?
A good news for buyers and those looking for no-credit-check car loans has been expressed in relation to a latest report from Equifax. The report is about the growth of subprime lending in 2014, revealing that the total balance of car loans reached its record highs mid-2014, a 10% increase in figures compared to mid-2013.
No credit check car loans are loans that you can be approved for even if your credit card score is poor, meaning even if you have bad credit, no credit history or have been turned down in the past, these loans can obtained by specialists loan lenders.
The only downside of these loans are that rates are extremely high in comparison to regular high street loans. Nevertheless, if one needs a loan immediately, approval for a no credit check car loan is very easy to secure.
The current car lending industry is in its best for consumers with bad credit is in its best since before the Great Recession. Customers take this opportunity to re-establish their credit scores. “Car lending continues to thrive, accounting for more than fifty percent of all new non-mortgage lending through April of 2014,” said Dennis Carlson, Deputy Chief Economist at Equifax.
“Lenders are responding to record low delinquencies by offering great rates and terms, while consumers are responding to the improving economic conditions by making the decision to purchase newer vehicles. Additionally, subprime lending has grown across all sectors in 2014. This is good news as a fully functioning second-chance market is essential for a healthy economy.”
This is indeed good news for car buyers with bad credit issues, yet customers have to keep in mind that even though the car lending industry is continuing to grow, buyers should be reminded that nearly all lenders still require down payments of 10%, and those buyers with a bad credit rating should be reminded that these lenders, might be very selective during the approving of loans and are likely to offer these loans with extremely high interest rates as they are considering the risks due to growing numbers of buyers with bad credit scores in the market.