Is it true you can get a guaranteed car credit loan? The answer is yes and there are some caveats to getting such a type of loan. Let take a look and see why it’s important that you know beforehand the risks involved in getting a guaranteed car credit loan. You may be surprised that it not all it cracked up to be.
Around the internet and also offline you will see lots of ads that guarantee you will get an auto loan. You usually will hear ads that say “Bring in your Paycheck”" for quick approval, or something to that affect. Some of these ads are simply promising more than they can deliver. These ads are used to get you into the showroom. Once there if they can’t approve you they will try to sell you something you don’t want or they will ask for a lot more than you can afford as a downpayment.
The few places that can guarantee car credit do so but here are some of the pitfall that go with that guaranteed car credit loan;
You will usually pay a much higher interest rate, usually a lot higher. I have seen some as high as 29%.
You will usually pay more for the car. Usually you can get a car for a lot less than MSRP but with the bad credit loans you usually do not have much negotiating power and end up paying more than you should.
photo credit: AchimHIf you bring in a trade-in you might get more than you thought but that’s only because they are charging you more on the other things.
They might run your credit report way too many time. This can have a negative affect on your credit score.
If you do end up applying for car credit you really need to be careful as it can seriously work against you. Take your time and don’t rush the process. If at all possible save money for a while and buy a decent used car so that you don’t have to go and apply for a guaranteed car credit loan, that to us is the better option.
