Bad Credit Problem? You Can Still Get A Car Loan

Do you have a bad credit history? Not getting car finance as a result of this? Well, if you have the money or the source of a continuous flow of money, you can opt for the guaranteed car finance which usually comes when you want to buy a used car.  Banks will not give you a loan unless you can clear your bad credit history or unless you show them sufficient bank balance. With a dwindling credit record history, it is safer to stay away from the banks which will anyway refuse loan to you after they have checked your records. Therefore, approach the places, usually used car lots for your car finance and enjoy your drive.

When you can get loan in spite of a bad credit or perhaps not a very happy looking credit past from some lenders who agree to pay you the loan at a high risk, it is called guaranteed loan. You are not hiding your bad credit history or the fact that perhaps, you did not get a credit at all. The lenders who give you guaranteed car finance know very well that you have approached their door step only because you have had problems with getting your credit with the bank. He is aware about all these facts and willing to give you loan despite these problems. However, the reason why the lender or any organization is willing to give you money for your car at a risk higher than the usual risk taken by banks is because the lender and the organization charge from you a much higher rate of interest than what the banks would have charged. Not just getting loans for buying your car, your poor credit score history also improves with a good guaranteed car loan. So usually one would advise you to consider guaranteed loans only if all other sources of getting loans are closed. However, this high interest loan does pave the way for easier loan later by giving your credit history a good turn if you manage to pay the loan on time. Your work details are not really the primary consideration with guaranteed car loans.

It is true that guaranteed car loans are easier to get when compared to the long drawn and complicated process of securing loans from a bank, however, this kind of loan also has some requirements in terms of documentation and proper proof of being able to repay the loan on time. You do need some documents like the reports of your tax returns, the proof that approximately you will be able to pay the loan through your other properties, pay stubs and other documents giving credibility to your need for loan and your capability to pay it back. You do need some documents like the reports of your tax returns, the proof that approximately you will be able to pay the loan through your other properties, pay stubs and other documents giving credibility to your need for loan and your capability to pay it back. Importantly, remember to check on the rates of all the guaranteed car loan lenders before you decide to choose one, if you want a cheaper deal.

Though the time frame, more or less, depends on individual lenders and their whims, you can easily expect a time period of 5 years, though some agree to settle down for less.