What are No Credit Car Loans?

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What are No Credit Car Loans?

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No credit car loans are loans in which either the borrower does not have to produce a credit history, or may have a bad credit history, and still receive financing for an automobile. Often, those seeking such loans have credit histories that may prevent them from getting a car loan through more conventional means. However, there is often a price to be paid for this benefit.

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No credit car loans are loans in which either the borrower does not have to produce a credit history, or may have a bad credit history, and still receive financing for an automobile. Often, those seeking such loans have credit histories that may prevent them from getting a car loan through more conventional means. However, there is often a price to be paid for this benefit. The penalties and conditions associated with no credit car loans are often very harsh for the borrower. Car loan rates are often very unfavorable. In some cases, the interest rate may even be higher than the rate charged for credit cards, which are considered extremely risky and not backed by any collateral. Thus, no credit car loans may actually end up hurting someone who is already in a poor financial condition.

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