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Obtaining car finance with no credit check

When buying a new car most people need to take out a finance deal in order to pay for it. This means borrowing money from a bank or other financial institution and paying back the loan in monthly repayments. As with most loans, banks and finance companies usually complete a credit check before offering finance, this is where they look at a person's past credit history to see if they are a potential default-risk. Obtaining car finance with no credit check is difficult as this is one of the only insurances a company has that you are likely to repay the money you owe.

While it is virtually impossible to obtain car finance with no credit check, this does not mean you will be automatically refused credit if you have a poor credit history. Certain financial firms specialise in offering people with a bad credit history finance for a number of things, including car finance.

FLM Loans do submit a credit check; however, this is to comply with responsible lending legislation, which means a financial institution has to do everything in its power to ensure a person is not over-borrowing. FLM loans guarantee a loan to every person who can provide a homeowner as their guarantor.This means, you will need a family member or friend who can guarantee your repayments. While this is technically obtaining car finance with no credit check, you must ensure you can afford the loan, as in the event of you defaulting, the loan company will turn to your guarantor for the outstanding amount.

Provident loans do not do any credit checks, but they only lend up to £1000 or £500 if you are a new customer. If you are only looking for a small amount for your car purchase Provident could offer a solution and repayment is made to an agent who calls at your home once a week.

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