There are a lot of auto financing companies out there making outrageous claims that they can finance everyone who applies; regardless of credit, work history, or financial situation. They claim that they have or are a lender who will finance you NO MATTER WHAT! You think to yourself, “Is this possible?” The short and simple answer is no. While it is true that there are lenders and auto financing companies that offer guaranteed auto loans for people with poor credit, you still must be able to meet a minimum set of requirements. In order to qualify for a guaranteed auto loan, you must be employed and able to make monthly payments on a vehicle.
Guaranteed auto loans are designed for people who have poor or no credit, as a method of a re-establishing and/or creating their credit scores. Because the borrower is considered high risk, typical guaranteed auto loans come with higher interest rates than general loans. For this reason, it is important to purchase a less expensive vehicle from a dealer or lender who is offering a guaranteed auto loan. Remember, if you are trying to repair or establish credit, the goal is to make timely payments and pay off the loan as soon as possible. The more expensive the vehicle, the higher your monthly payments will be.
Do Your Research
Most people are completely willing to sign up for guaranteed auto loans despite the high interest rates because they are relieved to find a dealership or lender that is willing to work with them. No matter what, it is always a good idea to try to negotiate a more satisfactory interest rate. You not be successful, but it never hurts to try.
To find a dealer who specializes in guaranteed auto loans, you should look for a dealership that is advertising loans for people with poor or no credit car loans. You can usually find these dealers on the radio or in the Sunday newspaper. The dealer will offer to finance you, as long as you purchase a vehicle from their lot. The dealer essentially becomes both the seller and banker. It is important to make sure that the dealer you purchase your car form reports your payments to the credit bureaus.
Work With Specialists
Another option is to apply for a loan through an auto finance specialist company such as BlueSky Auto Finance. When applying through the BlueSky website, you will be notified immediately if you have been approved from a direct lender. If approved in this manner, you will then be allowed to shop like a cash buyer. In the instance that you are not immediately approved from one of BlueSky’s direct lenders your information is sent, if available, to a dealership in your area who works with poor and no credit clients. The dealer will then contact you to visit the dealership and discuss your financing options. In either case, you are not locked into any contract in applying through BlueSky Auto Finance. We merely show you what options are available to you.
For more information in applying for auto loans through BlueSky Auto Finance click here.