Motorists have numerous options to finance car parts without a credit check.
However, expect to incur higher borrowing costs (interest and fees) or restrict the amount you can spend when asking lenders to ignore a critical underwriting tool.
Do you want to be on this gerbil wheel forever?
If not, personal loans can kill two birds with one stone.
Finance the performance or replacement components without a credit check and improve your FICO® or Vantage® score by paying the obligation on time and according to terms.
Make future purchases more affordable and attainable.
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Financing Performance Car Parts
No credit check financing for performance auto parts requires a specialized strategy based on your profile. The price points are higher, and you ask lenders to ignore their most predictive underwriting tool.
You might have no history or a file littered with derogatory marks.
No History
Some gearheads want to finance their performance car parts purchase without a credit check because they have not established a borrowing history. The big three consumer reporting companies (Experian, Equifax, and TransUnion) have no record of any previous activity.
First-time loans for eighteen-year-olds might be the best avenue to quickly improve your car’s acceleration, braking, and handling. Specialty online lenders utilize secondary bureau files for apartment rental and utility payment records.
Taking out and paying off a personal loan establishes a file at each of the three reporting bureaus and gets you off the gerbil wheel. Finance future purchases with more significant amounts, lower interest rates, and longer repayment terms.
Bad Credit
Other enthusiasts seek no credit check financing for performance auto parts because they have adverse payment histories appearing on their consumer reports. As a result, their FICO® or Vantage® score might be 580 or below, meaning likely denials.
Loans based on employment income could be the ideal pathway to boost your horsepower, shorten your stopping distance, or hug the road more securely. Specialty online lenders weigh your current earnings more heavily than past delinquencies.
Taking out and paying off a personal loan on time and according to terms adds recent, positive information to your consumer report, boosting your FICO® or Vantage® score. Finance future upgrades with larger amounts, lower interest rates, and longer repayment terms.
Credit Cards
Your existing general-purpose credit card can finance performance auto parts without a credit check if you have open-to-buy on the account. The issuing banks do not pull a copy of your consumer report for each transaction.
The open-to-buy or available credit on a credit card is the account limit minus the current balance owed. The transaction will go through if the price for the turbocharger or other high-end components is below this figure.
You can sometimes increase your credit limit without the bank pulling a copy of your consumer report. For instance, you could inform them of a new job or income increase, making you a safer bet.
Financing Replacement Car Parts
Personal loans are the preferred no-credit-check financing option for replacement auto parts. Follow the same two-part strategy outlined above to increase approval odds and build your consumer report and score through on-time payment.
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However, some people may still face declinations, meaning you might have to resort to other less attractive or reliable alternatives.
Buy Now Pay Later
The trendiest way to finance replacement auto parts without a credit check is through buy-now-pay-later programs. However, you will face three potential drawbacks with this approach.
- The retailer must accept the specific program at the point of sale. Many stores offer only one or two of these options.
- The aftermarket component price must be lower than your borrowing limit. You spread four interest-free payments over six weeks, so the amounts must be relatively small.
- Your positive payment history may not appear on your traditional consumer report to help your FICO® or Vantage® score.
You can clear the first hurdle by shopping online for your components. Below is a sampling of retailers that accept at least one buy-now-pay-later option.
Extended Warranty
An extended warranty can finance replacement auto parts with no credit check if you have one for the vehicle. Look through your files at home to see if you have this coverage before borrowing money.
For instance, an extended car warranty or vehicle service contract might cover replacing a failed engine, transmission, or exhaust system. Examine your auto loan and insurance documents to see if you added a rider. It’s easy to forget!
Using an extended warranty to pay for aftermarket parts may not boost your credit score, but who cares? You saved a bundle of money!
Auto Insurance
Your auto insurance policy can finance replacement car parts without a credit check but under limited circumstances. The insurance company might cover the cost after a motor vehicle accident.
There is no universal deadline for filing a car insurance claim. Sometimes, damage to your vehicle might not be apparent until weeks or months after an incident. For instance, a small crack in a component could grow over time until the part fails.
When auto insurance pays for aftermarket parts, it may not boost your FICO® or Vantage® score, but who cares? You saved a bundle of money!
