-
Getting Approved for Guaranteed Auto Loans
Guaranteed auto loans are another way of financing the next new or used car you purchase. Almost any auto dealer is prepared to offer you a guaranteed auto loan. It does not really matter to them what your credit acceptance status might be however it is very important to follow the conditions set out by a dealer offering you a guaranteed auto loan. Getting approved for a guaranteed auto loan may seem easy but there are a few things you need to consider first.
Check Your Credit First
If you’re going for a guaranteed car loan, it will be assumed that your credit is extremely poor and this will be the basis used to determine your rates. Therefore, you should only try for a guaranteed car loan if your credit is as bad as lenders will assume. A credit score below 600 is sufficiently bad, where a guaranteed loan should be your top choice. If your credit score is above 620, you are in the range where other types of loans should be readily available to you. Don’t settle for a guaranteed auto loan if you don’t have to.
Find the Best Dealer
You can find such dealerships in many different ways. Though the Internet is a very convenient way of finding dealers, newspaper, magazine classifieds and television ads are all good options too. You can do the necessary research from your office or home.
Many ads may use the catch phrase “buy here, pay here,” indicating the existence of a valid financing option, as these types of dealership-lender hybrids are very eager to help customers purchase a car under all kinds of circumstances. Even if it means higher than usual rates, you’re unlikely to be turned down for a loan from a car dealership, and may find the terms more flexible. The wise consumer will investigate further to determine if this is something that makes sense for him/her.
There’s no harm in looking for better rates before deciding on a lender, so consider looking for providers of bad credit and no credit check loans as a potential alternative. You might be able to find more suitable finance terms with different sorts of loans, so research all three types before deciding which is your ideal choice.
How to Get Approved
In order to get the best guaranteed auto loan, you should know your car needs and the amount that you are able to pay monthly. Once you choose your dealer, all you need to do is fill out the application form, submit it and wait for the response. Bear in mind that despite what the name implies, nothing is ever guaranteed. You have to demonstrate that you have a sufficient income and all bankruptcies have been dismissed or discharged. Only then can you qualify for guaranteed car loan approval.
After you have satisfied these basic requirements, you can get down to the details of filling out the relatively simple form. Digital statements from your bank and major credit cards are fairly easy to forward to the lender for verification purposes. Digital scans of documentation are also acceptable to certain lenders, though these will undoubtedly need to be followed up with the hard copies. If you are suspicious of sending this information through the web, just bring copies of all the required documentation to the dealer.
Find a Broker if Necessary
If you need help finding any type of loan, you can turn to an auto loan broker. These people are very well ingratiated with various lenders and will be better able to find loans which meet your needs. However, they also require payment and will be more interested in serving their own interest than yours – which may not always coincide. Hire a broker if you can’t find a loan on your own, but look around and do your own research first.
Guaranteed auto loans don’t offer the best rates around but if you have a low credit score, they may be your best choice. Follow these tips to find the best deal on an auto loan before purchasing your next car.
