News Blog



  1. Blog
  2. Buying a Car From a No Credit Check Car Dealer in Utah

Buying a Car From a No Credit Check Car Dealer in Utah

by - Posted 1 year ago

When you want a safe, reliable vehicle for work, travel, and running errands, upgrading to a newer model often makes the most sense. It will have less wear and tear, a more efficient powertrain, and better safety features. But buying a late-model car out of pocket is not an option for most buyers. And while going to a no credit check car dealer in Utah is a great option for many buyers, often they will start by shopping at a dealership, where applying for financing may be necessary, along with a credit check. A credit check assesses your reliability as a borrower and your financial ability to pay back a loan.

How Does a Credit Check Work?

When you apply for automotive financing, shop for a car, or even schedule a test drive in some cases, the car dealer will typically run a credit check. This means sending an inquiry to one or more of the three primary credit bureaus in the United States—Experian, Equifax, and Transunion.

Nearly every company that offers credit in some form, from retail stores and restaurant clubs to credit card providers, banks, and mortgage brokers, will report to these firms. The credit bureaus will then track all your credit transactions, your balances, and your payment history, noting any late payments, defaults, credit inquiries, and other factors that could reduce your creditworthiness. They then calculate a credit score that represents your overall reliability as a borrower.

As private corporations, the details of how credit scores are calculated by the credit bureaus can be a bit vague, as they all have their own proprietary formulas. They also have different policies on how long certain information remains on your credit report, both positive and negative.

How Does a Credit Check Affect Car Buying?

Unless you shop at a no credit check car dealer in Utah, you will likely need to obtain financing from a lender that will check your credit. If you have poor credit or no credit at all, it is likely that you will be declined for a loan. If you have fair credit, you may be approved, but you will likely pay higher interest rates and fees than someone with good credit, resulting in higher monthly payments. The lowest interest rates, the lowest fees, and the shortest borrowing terms are reserved for those with near-perfect credit histories. But even the act of checking your credit can harm your credit.

There are two types of credit checks—soft inquiries and hard inquiries. Things like taking a test drive or pre-qualifying for a car loan may result in a soft inquiry, which releases only basic information to the dealer about your creditworthiness and does not affect your credit score. A hard inquiry happens when you apply for financing or a loan. It provides a more detailed history of your credit to the lender, allowing them to judge if you are worth the risk for a loan. Each hard inquiry affects your credit for about two years, and if you have multiple hard inquiries during a short time, it can make you look desperate for a loan. Multiple inquiries can easily occur when you are visiting different dealerships and shopping for a car.

Skip the Hassle of a Credit Check

If you would like to avoid the stress and hassle of multiple credit checks, consider shopping at a no credit check car dealer in Utah. They feature alternative lending options that can offer more flexibility when you are shopping for a car, allowing you to get a newer, safer, and more reliable vehicle than if you had to pay in cash alone. Contact our friendly team at Rocky Mountain Motor Cars today!


Search
Show All Advanced Search