While struggling to meet both ends, guaranteed bad credit car finance seems like a ship on a rescue mission. However, there are many scams running on the market. This does not mean that auto loan guaranteed approval does not exist. There are many companies offering guaranteed car loans but there are always conditions attached to it. Before opting for guaranteed auto finance, make sure you have analyzed the pros and cons to the core. Here are some of the points you must ponder upon.
Having a bad credit
When you have a bad credit, there are limited options available for you. Targeting this mindset, many companies promote ads that convey guaranteed auto finance. A person who is in need of a car but has poor credit gets easily lured. Hence, generation of leads takes place. Although guaranteed car finance attractive but make sure you read thoroughly before taking up the loan. Also, do a bit of research about the car dealer. It will help you get saved from scams.
Incurring higher interest rates
Such lucrative ads about guaranteed bad credit car finance never show the hidden evil – Interest rates. Such loans always have higher interest rates. Sometimes, you end up paying more than the actual worth of the car. So by giving away loans to people with bad credit, they make more profit by charging higher interest rates than regular loans. To save a big chunk of money, try enhancing your credit score. Higher the credit score lower the interest rates.
Auto loan guaranteed approval
Do not expect to get a loan if you are a complete broke. A company needs proof on how you intend to pay them. Therefore, a credit score is of great importance. However, if you have a steady income and bad credit score, there are chances of you getting a loan.
Here’s all that you must know before you happily sign for guaranteed car loans. If you haven’t done a proper analysis before deciding, your happiness will be short-lived. The option of guaranteed bad credit car finance is amazing only if you do not lend up to a scam.