Bad Credit History? Look at Lendbuzz for a No Frills Auto Loan

By Chika


Last Updated: April 24, 2023


Having a vehicle allows you to commute to wherever you need to go.

If you need to get somewhere quickly, having a vehicle means you don't need to worry about the weather causing public transport to be delayed. A vehicle can facilitate numerous daily duties. If you lead a hectic lifestyle, an automobile can make your life much simpler.

However, access to a reasonable auto loan may be impossible to obtain if you have a limited or nonexistent credit history.

Lendbuzz can assist in resolving this issue by tailoring a loan to your entire financial profile, not just your credit score.



What is Lendbuzz?

Lendbuzz is an auto finance platform that provides car loans to individuals with thin to no credit history. Established in 2015, the company uses AI and machine learning algorithms to assess the creditworthiness of consumers beyond "traditional" credit scores.

This innovative approach to makes it possible for underserved groups eg. international students, migrant workers, etc. to access car loans. It also opens up a way for car dealerships to serve a more diversified market. 

Lendbuzz is headquartered in Boston, Massachusetts. The service is available in all states except:

  • Alabama
  • Delaware
  • Hawaii
  • Idaho
  • Louisiana
  • Mississippi
  • Montana
  • Nevada
  • North Dakota
  • Rhode Island
  • South Dakota
  • Vermont
  • West Virginia
  • Washington D.C.



How Lendbuzz works

Lendbuzz provides auto loans to deserving borrowers, including those without a social security number, no credit history, or thin credit.

The company offers fair rates and a chance to build your credit score. You don't need a credit history or a co-signer to get approved for an auto loan.

Applying for an auto loan on Lendbuzz does not affect your credit score, plus you have the option of refinancing your existing loan. ‍ You can pay off your loan ahead of schedule as Lendbuzz does not charge an early termination fee.

Vehicles can be purchased either from a dealership or a private party. The details of the transaction can be discussed with the sales representative from LendBuzz handling your auto loan application.

To qualify for a loan, you need to have an active insurance policy on your car. Also, not all cars qualify for an auto loan on Lendbuzz.

To qualify, your car should be:

  • a model year from the last 9 years
  • have fewer than 120,000 miles
  • not be a salvage-titled vehicle


How long does it take to get a loan on Lendbuzz?

It usually takes about two business days to get a loan.

This of course depends on if all information is provided promptly and verified. Once you put in an application, Lendbuzz verifies your information and finalizes the details of the vehicle you're purchasing. Thereafter your loan request is reviewed for final approval. 


What happens if you are late on a monthly payment?

If you are unable to make the required monthly payment by the due date and/or your recurring auto-payment fails, it is advisable to contact Lendbuzz immediately. You can work out ways to get your payments back on track. 

If you are more than 15 days late without any prior contact, Lendbuzz may charge you a late fee. If you are more than 30 days late, Lendbuzz will report your delinquency to a credit reporting agency. 

However, it's always in your best interest to avoid defaulting on your payments by more than 30 days. This is because having your delinquency reported to a credit reporting agency negatively impacts your credit score.



How to apply for a loan on Lendbuzz

Getting an auto loan on Lendbuzz is easy and quick. Here are the steps to take to get started:


STEP 1: Send in your application 

Send in your application for a loan request.

Regardless of if you are applying through a car dealership or directly, your application gets processed immediately. 


STEP 2: Get Verified

After you have sent in your application, Lendbuzz verifies your application information.

A few quick steps on your phone and you're ready for final approval!


STEP 3: Sign and get approved

Once you’re approved, all you need to do is apply your digital signature and start enjoying your new vehicle.

Lendbuzz will handle any remaining details directly with the dealership.



Benefits of Lendbuzz

  • You don't need a credit history to get approved for an auto loan.
  • Applying for a loan will not affect your credit score.
  • No early termination fee. 
  • Do not require a co-signer.
  • Can use it to build your credit score.


Downsides of Lendbuzz

  • The car model should be from the last 9 years, which may make it more expensive for low-income earners.
  • Not available in all states.

Photo by Efrem Efre


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