Guaranteed Auto Loans – Instant Credit Approval For You
Buying a new or used car can be a major expense, and it’s not always easy to get the money you need to make the purchase.
You may have been denied a car loan in the past, or you may not have time to go from bank to bank to find someone who will lend you money.
AllCreditCarLoans is here to help. We are a platform for a nationwide network of lenders specializing in auto loans for people with bad credit, no credit, and even those who have been bankrupt or foreclosed on. Apply now and get approved within minutes.
What Are Guaranteed Auto Loans and How Do They Work?
People can purchase cars thanks to guaranteed auto financing even if they don’t qualify for regular auto loans. Dealerships will use your employment history and current income to establish your eligibility. Down payment and income requirements may be required. The interest rates and fees on these loans can be relatively high.
In the quest for a new automobile, you’ve probably come across dealerships that offer guaranteed financing, no-credit-check loans, and “buy here pay here” deals. They all mean the same thing: a loan. Guaranteed car loans allow individuals with poor credit histories to acquire autos.
This type of loan may seem like a good option if you have little or no credit history. In some cases, they’re your only choice. These loans, however, come with a host of disadvantages, and as a result, they should be treated with caution.
How Guaranteed Auto Financing Works
When customers cannot acquire conventional auto loans, car dealerships may offer them guaranteed financing. The automotive dealer employs loan approval standards distinct from those used for conventional vehicle loans to finance these guaranteed loans.
When deciding on a conventional auto loan, your credit score and credit history are the two most crucial criteria a lender analyzes. These let the lender evaluate the risk associated with extending your loan. The higher the interest rate a lender must charge for a loan to be deemed risky, the greater the risk. As a result of this risk analysis, borrowers with good credit are frequently eligible for interest rates significantly lower than consumers with poor credit.
A recent Experian survey indicates that borrowers with prime or super-prime credit (scores above 660) pay between 2.34 and 3.48 percent interest on new automobiles and between 3.66 and 5.49 percent interest on used cars. Those with subprime or deep subprime credit (scores below 501) pay approximately 11.03-14.59 percent interest on new vehicles and 17.11-20.58 percent on used vehicles. In other words, the interest payments of a borrower with a credit score of 485 are typically larger than six times those of a borrower with a score of 785. Your monthly payments will increase as your interest rate rises.
The dealership will not review your credit history or score when applying for a guaranteed vehicle loan. They will instead evaluate your existing income, employment history, and ability to make a down payment. These loans are typically offered to high-risk borrowers, such as those with bad credit. Consequently, guaranteed auto loans have exorbitantly high-interest rates, which are frequently much higher than ordinary loan rates.
Auto Loans For Bad Credit
How does a person with poor credit obtain an auto loan? Examine your credit score. You may recognize that your credit score is poor, but do you know the precise number? Before qualifying for an auto loan, it is crucial to know your credit score, as it can change within days or even hours. Check your credit score at any credit reporting websites for any inaccuracies if it looks unusually low.
Apply directly to various lenders. Because auto loans for those with poor credit are costly, you should compare your options before accepting the first offer you receive. During two weeks, you will only have one hard credit inquiry for each application you submit.
People with a low credit score typically pay the highest interest rates, which can result in thousands of dollars in additional interest payments over the life of an auto loan. Because dealers can profit from increasing your APR, you must obtain an offer from a lender directly.
Contact your local bank, credit union, or online lender. Compare these offers with those acquired from websites like AllCreditCarLoans, where you may submit a single form and receive up to five loan offers from lenders based on your creditworthiness.
Guaranteed Auto Financing Dealerships
It can be challenging to locate a local dealership that provides guaranteed vehicle financing. What sets one dealership apart from another when offering in-house financing? We make it easier to find a dealership that can assist you without visiting or calling several different ones.
To help you get the money you require, AllCreditCarLoans has partnered with various lenders. We operate with a national network that includes guaranteed auto loan shops for special finance dealerships. We make it easier to track down a retailer in your neighborhood.
Your search for a guaranteed auto loan dealer in your area has ended here. Fill out our simple online loan request form, and we’ll put you in touch with a nearby dealership!
Minimum Requirements for Guaranteed Auto Loans
Not everyone is eligible for guaranteed credit approval. Although these loans do not require a credit check, you must still comply with specific criteria for guaranteed approval. Although each dealership has its standards, many demands at least some of the following to qualify for a guaranteed loan:
- Providing monthly income verification, such as a recent pay stub.
- a list of your employment history from the past three years or more
- valid government-issued identity
- A down payment is either a fixed dollar amount or a percentage of the car’s price by submitting a current electricity bill as evidence of residency.
- Two or more references must be provided.1
Apply to our dealership partners through our website to find out their requirements.