It is not. Unfortunately, No Credit Check Car Finance has become a term used in the past by finance companies, brokers, and dealers designed to mislead customers into thinking that car finance would be guaranteed so that more people would apply to them. There are no finance providers in the UK that do not do a credit check, not because they have to under the Financial Conduct Authority, but because they want to make sure that they are lending money to someone that is likely to pay them back.
Although No Credit Check Car Finance is a made up term, Pay Weekly Car Finance is a very real option for applicants with a fair or bad credit rating. Several specialist bad credit car finance providers will allow customers to pay them back weekly instead of monthly to align with weekly paid income, such as employment income or benefits.
Rather than spreading the loan over 60 months, it would instead be spread over 260 weeks meaning that you would pay exactly the same amount whether you paid it weekly, or monthly.
So, if you have a fair or bad credit score at the moment, here are our top 5 tips to help you improve your credit score and get a better car finance approval:
Finance companies like to see some sort of evidence that you live where you have put on your finance application, so if you are on the Electoral Register, they will be able to see that when they complete their credit check.
2. Make sure your active credit is all registered to your current address
For the same reason as above, your credit all tying in with your address history is a great way to raise your credit score.
3. Make sure you’re not in arrears or over your credit/overdraft limits
Current arrears are seen as a major red flag by finance companies and they are much more likely to reject your application if your credit file shows you are struggling to maintain your existing financial commitments.
4. Start contributing to any old defaults
Finance companies can see the amount when you defaulted on payments, as well as the balance now, so, if finance companies can see that you have managed to reduce the original debt, they will see this as a positive sign of your intent to pay them back.
5. Wait at least 30 days since your last finance application.
If you’ve been rejected by a finance company in the last 30 days and re-apply, you will most likely be automatically rejected again. It is best to wait 30 days at least before applying again, even more if the changes you’ve made to your credit file haven’t yet taken effect. You can track these if you sign up to Credit Karma.
This is just an advertising term used by car dealers, brokers, and finance providers to mislead customers into applying for car finance with them under the belief that their approval will be guaranteed. The truth is that no finance company can guarantee a car finance approval as there are fundamental practises that must be followed in order to offer finance such as:
While it isn’t possible to get car finance without a credit check, there are several specialist bad credit car finance providers in the UK that may be able to help even if you have a low credit score. Just apply for car finance at a specialist bad credit car finance dealer to check your eligibility.
