Whether you have bad or no credit, a guaranteed car finance loan will help make purchasing a new or used car possible.  In recent months, it has become more difficult for those with credit scores that are anything less than pristine to secure a loan for a car, home or credit card.  Anyone who has had trouble securing a loan through a dealership or bank should consider applying for a loan though a company that specializes in guaranteed car financing.  These companies often offer shorter applications and a more streamlined approval process, reducing the amount of time spent waiting for your new car.

Car loans are considered secured loans and are therefore lower risk for the lender.  The car purchased with the loan given is used as collateral for the loan.  This means that interest rates for car and other secured types of loans are generally lower than the rates offered on credit cards or cash advances.  It is possible for people with credit scores that disqualify them for credit cards to qualify for car loans with reasonable annual percentage rates.  For the best chance of qualification, do not apply for a loan through a dealer or primary banking institution.  Instead, use an online company that offers a guaranteed car loan to finance your new automobile.

Often, the approval process for these loans is simple, and can be completed from a home computer.  Depending on the company that you choose, the process for approval may differ.  One will need the exact make, model and year of the car they wish to purchase as well as the purchase price.  Proof of employment and a savings or checking account may be necessary for some companies.  Be aware that some companies will offer loans that cover applicable sales tax while some will only cover the sticker price of the car.

Take advantage of companies that offer free quotes of their car finance rates.  For a car that cost more than ten thousand dollars, even a small difference in the annual percentage rate can mean a savings of a hundred dollars a month or more, or a few thousand dollars over the life of the loan.  Remember that extending the payment schedule will mean lower monthly payments, but will amount to a larger total payoff amount.  If the reason for your bad credit is a lack of payment history, consider seeking out a loan that has few penalties for early repayment to facilitate refinancing when your credit score improves.

When deciding which institution that offers guaranteed car credit to use, always check their reputation before entering into a relationship.  Contact the Better Business Bureau to make sure they are a reputable company.  Look for any online customer reviews or experiences.  There are a number of great lenders who guarantee car finance, but there are also some predatory companies that operate in this space.  Those who do the research before signing a contract will save time and money in the long run.

For anyone who has had difficulty securing a loan in the past, a guaranteed car finance loan is the best route to car ownership.