In August 2005, the band was offered a record deal with a New York street-punk label. According to the band, they were thrilled to receive the offer, as they were in debt, on the verge of bankruptcy, and would have had no other option but to end the band. At the urging of the label, The Scarred quickly rushed to a rent-by-the-hour practice studio in downtown Anaheim and had a live set of three songs recorded by filmmaker Lewis Smithingham, who included it in Punk Core records' first DVD, Pure Punk Rock which was released March 7, 2006. Unfortunately, the master copy of the DVD had been scratched over the Scarred's set, causing the audio and video on the last segments to skew. Justin would later comment that they regretted recording for the DVD at all, due to the rushed and comparatively low quality of their segment, but that they were honored to be included and featured alongside The Casualties, The Virus, and Defiance, among others. According to the Spring 2006 Edition of Loud, Fast, Rules! magazine, the band had been recording songs over the last nine months one session at a time as budget allowed. With Punk Core's help, they were able to finish the album in December 2005, at which point it was set for release in April, 2006.
After an October tour, which included both the debut of new rhythm guitar player Andy White of KTP, and also his dismissal after the tour was over, the band set out on their second Clampdown U.S. tour with friends and Los Angeles street-punk locals, Destruct. The date of their Washington, DC show was canceled due to a stabbing at the venue the previous night, but on April 4, 2006 The Scarred's second album No Solution was released in stores. The album was received with good reviews from the United States and Europe.Skratch Magazine praised its diversity in a feature in the May Issue of that year, in which, oddly, Justin hinted at his disappointment in not being able to see the album released on Cassette tape, an obsolete format. The Scarred went back on the road soon after returning from their April 2006 tour. The Scarred took two weeks off before heading out to support what would be Cheap Sex's final tour. On tour the shows did well, but was plagued by conflict within the tour that would signal the eventual breakup of Cheap Sex. The Scarred's drummer, Isha, was also pregnant the entire tour with her and husband and singer Justin Willits' first child.