When you have a poor credit rating, obtaining finance can often be difficult.
People in this situation want to know how they can get a car loan easily.
Being refused finance when you have a poor credit rating can often make your credit score even worse and so it is important to know where you can find lenders who will approve your finance application the first time.
There are many lenders around that claim to offer guaranteed bad credit car loans, but what does this really mean, and are you really guaranteed approval for these types of loans? The first thing that you will need to understand when looking for poor credit finance is that there really is no such thing as guaranteed bad credit car loans.
While your credit rating may not play a significant role in determining approval for poor credit finance, lenders who advertise guaranteed bad credit car loans will still need to assess your application based on your current financial situation.
Your income, the level of outstanding debt you have and the factors leading to your bad credit score are all factors that lenders will consider when looking into your loan application.
There are some instances where you will not be able to get guaranteed bad credit car loans.
If you are currently going through a bankruptcy proceeding, and it has not been finalized, you will not be able to obtain any form of finance.
Additionally, if you do not have sufficient income or do not meet the minimum eligibility criteria, you will not be able to get guaranteed bad credit car loans.
One thing that these types of loans do offer, however, is a way for people who have a poor credit rating, but have the income to meet their car loan repayments comfortably, to get auto finance.
The way the economy is at the moment, poor credit finance is in demand.
Because of this, there are a large number of lenders in the industry who are offering auto finance to people who have a poor credit history.
With so many lenders around, competition is fierce when it comes to this type of finance and there are some great deals to be had in regard to bad credit auto loans.
One thing you do need to be aware of, however, is that lenders will do everything they can to attract customers including advertising guaranteed bad credit car loans.
When you see a lender promoting guaranteed loans even for those with a blemished credit history, do not discount them.
Most lenders who deal with these types of loans will promote themselves in this way, but you do need to understand that all lenders will require you to undergo some kind of assessment when you apply for finance.
What guaranteed bad credit car loans generally mean is that these lenders will loan money to customers with an undesirable credit rating as long as they have the income and financial capacity to repay their loan.
It is important that, when you are looking for car finance with a poor credit rating, you examine your budget carefully and only look at borrowing an amount that you can comfortably afford.
This will increase your chances of getting guaranteed bad credit car loans.