Guaranteed Acceptance vs Guaranteed Approval Car Loans
Are you currently in the process of shopping for a new car? If so, and if you are doing so with less than perfect credit, then you may be nervous as to whether or not you will be able to get approved for financing. After all, who has the money to afford paying for a car in full these days? Perhaps you have begun looking into the different approval options that are out there for people needing poor credit auto loans and come across both guaranteed acceptance and guaranteed approval loans. But in understanding the difference between guaranteed acceptance and guaranteed approval when it comes to bad credit loans, what do you need to know?
Well, there is a lot that comes along with understanding the difference between various type of guaranteed auto loans when it comes to bad credit auto loans. Many people mistakenly assume that the two are one in the same, but there are actually significant differences between the two. Ideally, you will be able to get a loan with guaranteed approval, as these loans tend to have lower interest rates and less applicable fees. As a result, these loans allow you to pay less for the car in the long run.
What is the Difference?
- The main difference between guaranteed acceptance and guaranteed approval is that acceptance entails that the applicant did not meet the minimum qualifications for the loan but was given an offer for financing anyway.
- On the other hand, approval means that the applicant met the minimum requirements and was officially passed for the loan.
- As you can imagine, being approved for a loan is better than being accepted because acceptance often entails additional interest and a more expensive loan in the long run. With approval, you know what you are being approved for before you even apply.
Find the Right Loan for You
So regardless of your credit score, the good news is that there are ways to find the right loan for you. If you are unable to get outright approved for an auto loan, you may be able to get guaranteed acceptance on a loan with difference terms. And while this may not be the most desirable option in the world, the good news is that it will suffice to get you into a new car so that you have a reliable mode of personal transportation.
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