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A bad credit history can make it difficult to get the financing you need in order to purchase a car. Some dealerships offer guaranteed credit approval financing packages that present benefits to those who may have a less than positive credit rating.
No Prior Debt Repayment
Auto loans offered by dealerships that have guaranteed credit approval do not require you to pay down any prior debt. Conversely, traditional financing avenues require a certain level of credit worthiness that may necessitate repayment of debts that are negatively affecting your credit score. With guaranteed credit approval, you do not need to have enough money to make repayments and a down payment on the car you want to buy.
Income Based Financing
Instead of approval and interest rates based on your financial past, guaranteed approval car loans provide vehicle financing based on your current financial reality. This benefit of guaranteed approval will make keeping up with the car loan’s interest rates and payment schedule much easier to accomplish.
Credit Score Repair
Some situations that can halt approval on traditional financing options may not be connected to actual debt. Lack of credit history, a previous repossession or bankruptcy can contribute to the rejection of a loan. Regular payments made on a guaranteed approval auto loan can help improve a bad, or limited, credit history. Find out whether the dealership you are working with reports repayment of loans to credit reporting agencies.
Late Model Options
One of the most frustrating aspects of trying to buy a car with bad credit is the lack of new and late model vehicle options at your disposal. It is possible to get yourself into a car you actually want, instead of an older model with thousands of miles already on the engine. Dealerships that offer guaranteed credit approval loans can provide financing on late model cars buyers with bad credit may not have been able to get through more traditional financing.
The benefits of car loans with guaranteed credit approval allow drivers with poor credit histories to finance the vehicle they need. Dealerships that offer such loans look at your current earnings and ability to repay instead of your past debts and credit issues.