Are There Guaranteed Used Car Loans For Bad Credit?
March 25, 2013
Are there guarantee used car loans for bad credit? If you had asked this question ten years ago in comparison to today, the answer would be very different. Now, there are many auto loans for people with bad credit, foreclosures, bankruptcies and even car repossessions. You don’t have to worry about getting an auto loan, but you do have to make some comparisons before accepting the first loan that is offered to you.
How to Get Auto Loans with Bad Credit
Are there guaranteed used car loans for bad credit? Absolutely. You can get approved without having a lender check your credit score. You will, however, need to prove that you can make your payments. To do this, you will need to prove:
- Your age (18 or older)
- Your income (at least $700 or higher)
- Being at your job for a year or more
- Being a US Citizen or legal resident
If you can prove these four things, getting an auto loan with bad credit is not a problem. More lenders offer bad credit loans today than ever before. There is an entire bad credit loan industry out there that you can tap into.
Before you get too excited about getting an auto financing with bad credit, there are some things you need to know about.
The Importance of Comparing Bad Credit Auto Loans
Are there auto loans for people with poor credit? Certainly, but to what expense? Some lenders want to lend you a very small amount of money. Others want to charge you a significant interest rate. These have to be looked at when you are considering lenders for your bad credit auto loan. If you don’t look at these things, you could be spending a fortune for your car, which is not something you want to do.
An interest rate can either be prime or subprime. Subprime lenders are traditionally the ones offering you the bad credit loans. These can be a few percentage points higher than a prime or double or triple the prime rate. Make some comparisons to protect yourself.
Find out what the cost of the car is that you want. Then find a lender that will loan you that amount. When in doubt, start with the used car dealership near you for a little assistance in this department so you don’t make mistakes.
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