When your car finally breaks down for good and cannot be repaired, replacing it with a different vehicle might be a necessity if you need a way to get to work each day. If your credit is beyond bad and you have very little money for a down payment, you might be the perfect candidate for a guaranteed approval auto loan. Here are five things you should know about these loans:
- The lender may not even need to check your credit. When an auto lender advertises guaranteed auto loans, it is because they issue loans to people with bad, poor, or no credit. Because of this, there is no reason to check a person's credit score when they apply for a loan. If you prefer not having a credit check, you should look for a lender that does not perform credit checks, and you can find this out just by asking.
- You will get approved for a loan. The best part about guaranteed auto loans is that almost anyone can get a loan. There are conditions and requirements, but these are typically fairly easy to meet. In other words, if you need a loan to buy a car, this is the best path for you to choose.
- Your terms might be different than those of a normal auto loan. The good news is that you can most likely get a loan through a guaranteed approval auto loan, but the downside is that you may pay a little more for the car you purchase. The interest rate is likely to be higher than that of a regular loan, and you might have to agree to make weekly payments on the car instead of monthly payments.
- Your lender may need to verify your income. One of the common requirements for getting approved is an income verification. Because the lender will not always run a credit check on an applicant and because these loans are for people with bad credit, you will have to prove you can repay the loan. The best way to prove this is through an income verification process or by bringing in your most recent pay stubs to the lender.
- You may have a limited choice of vehicles. Finally, you may have to choose from a small number of vehicles for this type of loan; however, this is not always the case. Some dealerships that offer guaranteed approvals have a large assortment of vehicles you can choose from.
A guaranteed approval loan may not offer the best interest rate and terms, but it is a great option for people that cannot qualify for traditional loans. To learn more, contact a dealer that offers guaranteed approvals in your area today, such as Leopardi Auto Sales.
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