Guaranteed car finance is a service that is offered to those of us who have low or no credit scores. This includes college students who have just graduated and are in need of a car to get to their new place of employment. It also includes people with bad credit. Lending institutions are coming to the conclusion that they are missing out on a lot of business because by turning down loan applications from people with low FICO scores. Many of these people are responsible, are employed and definitely have the means to repay the loan. The problem is that due to uncontrolled circumstances such as accidents, a medical condition or identity theft these people have inherited bad marks on their credit reports.
Companies that offer guaranteed car finance do not require an extensive application process. The borrower simply applies for financing by providing their social security number, a little personal information, and a bank account number. Guaranteed car finance companies will approve the loan with much less fuss than a bank or an auto dealer. They will then let financial institutions bid for these loans in order to secure the absolute lowest rate possible.
The guarantee is not necessarily in reference to the rate that you will be approved for. This language can vary from site to site, company to company. It could mean a guarantee that you will be approved though the rate may be high. The guarantee could mean that you are guaranteed the lowest rate offered by the lenders that bid on the loan. Either way, a guarantee is a good thing, just be sure you understand exactly what the guarantee is so that you don’t feel as though you’ve been duped.
When calling or applying for guaranteed car finance you will usually have your answer in a matter of minutes after which the details are ironed out. Details such as the actual interest rate, terms and penalties, and how much of a down payment you will be required to make. A word of caution, no legitimate lender will require you to pay anything up front. Your first payment will be the down payment which will occur after all other details have been worked, reviewed and documents have been signed.
Most people absolutely need a car, whether it will be used to get to work or to the grocery store. Without a car these necessary tasks would be exponentially more difficult. Guaranteed car finance allows people with no credit or poor credit the opportunity to begin building a better FICO score.