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Credit problems can happen to anyone. Even individuals that always pay their bills on time and keep a steady income can fall victim to unfortunate circumstances. However, for individuals with bad credit it can be extremely difficult to obtain the financing necessary to purchase a vehicle. The biggest problem with this is that most people require a reliable vehicle in order to get to and from work and earn the money necessary to repair their credit. Everyone deserves an opportunity to fix their credit.

However there are options for purchasing a vehicle when you have credit problems. In order to decide which option is right for you, it is necessary to understand the difference between two different types of financing:

  • Guaranteed Auto Loans
  • Bad Credit Auto Loans

 

Guaranteed Auto Loans Are Different

Guaranteed auto loans are different from traditional auto loans. With a guaranteed auto loan, the dealer acts as the lender and you agree to make weekly, bi-weekly or monthly payments directly to them. Instead of relying on a credit score to determine your eligibility for a car loan, all you need to prove to obtain guaranteed auto financing is your income and your ability to make payments. The application for this type of auto financing is usually streamlined and interest rates are extremely competitive. As you make payments, the dealership reports your payment history to the credit bureaus. Over time this can significantly improve your credit score. In addition, the vehicles offered by guaranteed auto loan dealerships are typically priced more affordably than those at other dealerships.

Make Monthly Payments Directly To The Lender

Bad credit auto loans are sub-prime loans offered by lenders that specialize in high-risk financing. Bad credit loans are similar to traditional loans. Lenders of bad credit loans partner with dealerships to review customers that cannot get approved for a loan otherwise. With a bad credit loan you agree to make monthly payments directly to the lender. Because the lender must pay the dealer upfront for the vehicle, interest rates for bad credit loans are typically very high, sometimes exceeding twenty percent. While many dealerships offer bad credit loans, it can be extremely difficult to find one that will offer you the terms that you desire. It is important to shop around to ensure that you are receiving the best deal for your individual credit situation.

“No Credit Check” Guaranteed Financing Program

Car Credit Nation sells top quality used cars to consumers who wish to participate in their unique “no credit check” guaranteed financing program. For more information please contact Car Credit Nation today.

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