Guaranteed Auto Loans

Deciding to purchase a new car is an exciting one. But, before you head out to visit your favorite dealership, it is important to know what type of loan will work best for you. Guaranteed auto loans are one of the easiest types of loans available. They are easy to qualify for and can be approved in as little as two hours.

Guaranteed auto loans are perfect for buyers who have not established enough credit to qualify for a traditional loan. They can also help buyers with less than perfect credit improve their credit rating by making their monthly payments on time.

What is a Guaranteed Auto Loan?

A guaranteed auto loan is a type of loan that provides quick approval and easy financing. Guaranteed auto loans are unique in the way they work compared to traditional loans because they do not require the borrower’s credit score to be above a certain level. With most types of financing, if your credit score is below a certain point, you will not be approved for a loan and will need to find a different kind of financial assistance.

Guaranteed auto loans are a great option for consumers who have not established enough credit to qualify for a standard loan. Guaranteed auto loans are also available to buyers with less than perfect credit who want to improve their credit score by making their monthly payments on time.

How Do Guaranteed Auto Loans Work?

A guaranteed auto loan is a very simple process. The buyer fills out the paperwork online, gives the required information, and can have the loan approved in as little as two hours. Once approved for a guaranteed auto loan, you will receive an offer letter from your lender.

This letter outlines your monthly payment options and how much you need to pay to make each payment on time. You will be required to make monthly payments, just like with a standard purchase or lease agreement. All funds for your payments are deposited directly into your bank account on the due date each month.

Where do I get a guaranteed auto loan? 

There are a few different places to get a guaranteed auto loan. Banks and credit unions offer guaranteed auto loans, but you may have to visit more than one financial institution to find one that meets your needs. Some online lenders offer guaranteed auto loans because they are quick and easy to get approved for. In the past, buying an automobile was often considered a once-in-a-lifetime purchase.

Today, most people purchase multiple cars throughout their lifetime. That makes it harder for people to get approved for a loan since they often need a large loan amount to finance them. The good news is that guaranteed auto loans are new and are much easier to qualify for than they used to be.

How much can I borrow?

The amount you can borrow will vary depending on the guaranteed auto loan you qualify for. For example, if you have a bad credit score and have never owned a vehicle, the lender may approve your loan for as little as $5,000 or $10,000. If you are purchasing an expensive car with all the options, you may need to borrow up to $50,000.

A lender will also consider how much money is left on your current vehicle and how long it would take you to pay it off if it was fully paid to determine what type of loan amount they will approve for the second car purchase.

What Are the Pros and Cons of Guaranteed Auto Loans?

The biggest benefit of guaranteed auto loans is that you do not need to worry about how much money you can pay toward your loan because your lender has already done that for you. You simply make your monthly payments on time, including making payments within a grace period. You can only avoid paying interest charges if you make a monthly payment.

The interest charges on these loans can be very high because the lender does not care about your credit history. They only want their money on time, so they can make sure it gets back to their investors in a timely manner. As with any type of loan, guaranteed auto loans have risks and drawbacks. Unlike traditional loans, guaranteed auto loans come with very high-interest rates.

Remember, the lender does not care how much equity you have in your home or how secure your job is; they want their money back and will go after your non-exempt property if you do not make payments. Like traditional loans, you will be required to pay taxes and insurance on your car, and the interest rates can be very high.

There is no good reason to pay an excessive amount of money in fees and interest when you do not have to. If you have less than perfect credit, there are many other types of financing available such as personal loans, credit cards, and even home equity lines of credit that can help you get a new car without breaking your budget. The best way to determine what type of loan is right for you is to compare each type and all other financing alternatives.

Who is Eligible for a Guaranteed Auto Loan?

Most buyers with less than perfect credit will be able to qualify for a guaranteed auto loan. This includes borrowers with negative credit history due to missed payments, lost jobs, bankruptcy, and other types of financial reversals. If you want to improve your credit score, these loans can help you make your monthly payments on time.

You will, however, need to have sufficient income because interest is charged on the loan balance if you cannot make the required monthly payment. Just like with standard auto financing, a buyer with less than perfect credit should also have a minimum down payment of at least 10% of the purchase price.

The people who may qualify for a guaranteed auto loan include buyers with good or average credit who may not qualify for other types of financing. You may be eligible if the following applies to you:

• You make your payments on time and in full every month.
• Your car is worth between $4,500 and $9,500.
• Your car is between 1 and 10 years old.
• You have a minimum credit score of 500.

Guaranteed Auto Loan Application

Applying for a guaranteed auto loan is very different from the traditional lending process. Instead of applying at your local bank or credit union and waiting weeks to be approved, you will apply directly with the lender that offers this type of loan online. The entire application process can usually be completed in as little as two hours, depending on how busy the lender’s website is with your application. The best part about guaranteed auto loans is that they are approved quickly and are very easy to qualify.

The application for a guaranteed auto loan is fairly straightforward. In most cases, buyers must provide the following information:

• Driver’s license.  If you do not have a driver’s license, you will need to provide another form of identification, such as an ID card or passport.
• Personal information, including your name, address, and social security number.
• Information about the vehicle you want to purchase.  This includes the make and model of your automobile and the purchase price.  The lender will also verify the value of your trade-in vehicle if applicable.
• Information about your current income.  
• Information about your employment history.
• Information about the type of home you live in and the number of people living in that home.

You also need to meet the following criteria: 

• Have a valid driver’s license.
• Be at least 18 years old.
• Live in the United States.
• Have a good credit score (the higher, the better).
• Not be in default on any of your other loans. 

Before you fill out a guaranteed auto loan application, it is important to remember that you will verify your identity before the lender approves your application. It is done by having a lending company representative contact your employer and any creditors with whom you might have previously filed for bankruptcy or similar debts and obligations. You will also review your credit report to verify that you are not currently delinquent on any payments or if you have filed for bankruptcy protection in the past.

Once your application is completed, it will send it to the lender for approval. This can happen in as little as two hours. After applying for a guaranteed auto loan, you can purchase your automobile from the dealership of your choice. You will then receive a call from the lender telling you how much money you are approved for and what terms and conditions of the loan will apply to you.

Why do people choose a guaranteed car loan?

Many customers choose a guaranteed auto loan because they are tired of dealing with creditors and want to know that they will always have the money they need when purchasing their next vehicle. Others choose this type of financing to improve their credit score by making their monthly payments on time.

Guaranteed auto loans can also make it easier to buy a car because you will not need to make a large down payment. Paying less money up front requires buyers to have less money in the bank, which means they may have difficulty buying a car without help. When financing your next vehicle purchase, you should consider all your options.

While guaranteed auto loans are very easy to obtain and can be approved in as little as two hours, they usually have higher interest rates and more fees than traditional loans. If you can qualify for a traditional loan, it is recommended that you choose that option instead. This will help you to get the best rates and fees for your loan, which means you will be spending less money on your new vehicle.