Guaranteed Car Finance

Guaranteed car finance is an expression being thrown around quite a lot lately by many car finance lenders. The credit markets have tightened significantly over the past couple of years, and many lenders want to stress the fact that they can approve you despite whatever your financial circumstances are. The problem with these lenders saying that they can offer a guaranteed car finance is that often times these lenders do in fact have pretty much the same requirements as a more conventional lender that wouldn’t be making such a gregarious statement.

Lenders typically include a guaranteed car finance statement in their advertising as a hook to get people seeking car financing to investigate their offers. No lender can absolutely guarantee that they will approve you for a car finance loan, so you must be careful when you see this statement being used by lenders in their financing. Lenders that do offer some kind of guaranteed car financing will perhaps grant you some leniency when it comes to your credit situation.

As many people already know, a personal credit score and credit history is looked at closely by lenders when determining to approve an applicant or not. Everyone has a different situation in terms of their personal credit, and credit scores can range dramatically from 350 to 850. People that have below a 620 credit score are typically considered to have below-average credit, and anything in the five hundred range or below is said to be poor credit. For these people getting approved for a car loan can be a difficult task, and any lender that offers a guaranteed car finance will be take this into consideration and will typically deny these applicants.

If you do see an advertisement that states a particular lender offers a guaranteed car finance, you should investigate closely, and be wary of any other extraordinary claims. These lenders may be able to provide you with the car finance loan you need, but understand that you will have to make sure that the rest of your application is in order unless you have a creditworthy cosigner. This means that you will have to have an income that has been consistent for at least one to two years. You should be able to prove this income via the appropriate tax documents or pay stubs. Lenders will require these materials before they approve you, as they must verify that you’ll be able to repay the loan if they do in fact approve you. They will also want to know if you have any kind of down payment money, or a vehicle that can be traded in instead of a cash payment. Without these factors in place, most lenders that advertise a guaranteed car finance will still not approve you despite their advertising statements.

If you do want to improve your chances of getting approved at most lenders, you should think about taking the required steps that could actually improve your credit score over time. It is actually not that difficult to take your credit from a poor, or bad credit status to a fair or good credit status. The key is to know what steps to take, and then just following through appropriately. The best things you can do involve making any defaulted accounts current, resolving any errors on your credit report, and paying off any existing balances you have on any of your revolving lines. If you can do these things quickly, it is not uncommon for a score in the five hundred range to jump up into the six hundreds in a short period of time. Improve your credit and you won’t have to worry about following up on those guaranteed car finance advertisements that often times promise the world, but fail to deliver.