When you buy a new vehicle, you also need the appropriate financial means to finance it. But usually no one has such a large amount at their disposal or saved together, so you have to take out a loan. But you can also apply for credit brokerage directly from car dealers who often offer so-called car loans. But can you also get a car loan with a negative credit check?
How do you get a car loan with negative credit check?
Because it is not uncommon for car buyers to apply for a car loan with a negative credit check, but then you will also experience that this loan application is rejected. But in some cases it doesn’t have to be, because there are special constellations that make it possible to still get a car loan with a negative credit check, but this is usually related to the overall circumstances.
For example, if the applicant is a civil servant who has a negative credit check entry but already has a completed dunning notice, then the loan is usually approved when he applies to a car bank and then also makes a good down payment for the vehicle.
The same principle applies to other employees if, despite a negative credit check, they are able to make a correspondingly high down payment. But you shouldn’t be too sure, because the approval also depends on which negative criterion it actually is. If you have taken an affidavit or are in private bankruptcy, then the car loan will also be rejected in the event of a negative credit check.
What are the approval criteria for a car loan?
If you apply for a loan from a car bank, you must also deposit the vehicle registration document with the bank for the entire term of the loan, which provides additional security for the bank. In addition, you usually have to expect a down payment of 25 percent of the vehicle costs, which the car bank also regards as additional security. If you are still in a permanent employment relationship, you can be sure that you will also get a car loan with a negative credit check.
Another option would be a car loan from a third party bank.
If you apply for a car loan from a third-party bank, you usually have worse chances. Because if you want to get the loan despite a negative credit check, then this bank requires that you have a solvent guarantor. Because for many banks, a negative credit check entry is an absolute KO criterion, which is why the loan is not approved.