subject: How To Find Bad Credit Guaranteed Car Loans To Help You Get Behind The Wheel [print this page] When a poor credit situation is continually letting you down, finding a car loan you will be approved for can be a difficult and frustrating experience. Many banks automatically reject anybody with bad or no credit because of the perceived risk that repayments will not be made. Don't be disheartened though, as there are still ways and means of finding a bad credit guaranteed car loan, and often, online lenders are your best bet for a quick and easy process.
The first thing to do is to check your credit score yourself you need to be sure that your score is accurate, as mistakes do happen. If even one bit of information is wrong, it could seriously affect your score and therefore the amount you will have to pay on a loan. If you don't have to obtain a bad credit guaranteed car loan, you will certainly pay less in interest. The high cost of interest is often the price that needs to be paid for those with low credit scores, however, you will certainly still have the opportunity to shop around for a competitive rate.
On that note, the second thing you must do if you do have a poor credit rating, is to be realistic there are certainly lenders out there who will advertise a bad credit guaranteed car loan but the way they mitigate the risk is to charge higher interest rates so that they be assured that they will recoup their money if you do default. You will have to pay a higher rate than if you had a good credit score but the most important thing is to get a loan in the first place, as you can then work at improving your score by making your payments on time and in full. After a year or so you might then be able to refinance your car and obtain a loan with a lower interest rate. You will then have killed two birds with one stone you will have got the loan you needed to purchase your car and improved your credit score, making it easier to apply for other loans and credit cards in the future.
A bad credit guaranteed car loan can often be easier to find if you have some sort of down payment, as it provides the lender with greater security you are effectively using that money as equity. A down payment could also reduce the interest rate on your bad credit guaranteed car loan. Another way to boost your chance of getting a bad credit guaranteed car loan is to have a co-signer, someone with a good credit history who will then be responsible if you fail to make repayments, as this obviously lessens the risk to the lender.
If none of the above is possible, it is still possible to obtain a bad credit guaranteed car loan by going to a specialist lender who will not perform a credit check at all. Such lenders instead look at your employment history and income to verify your ability to repay the loan. As long as you accept that you will have to pay a higher interest rate, there are a number of options available to get a bad credit guaranteed loan.
How To Find Bad Credit Guaranteed Car Loans To Help You Get Behind The Wheel
