How to Get a Guaranteed Car Loan

How to Get a Guaranteed Car Loan. Financing a car can be a stressful time for some people. If you have bad or no credit, it can be quite hard to get approved for a loan. There are some ways to get a guaranteed car loan but watch out for predatory lenders.

Get a guaranteed car loan to finance the purchase of an affordable used car. Since these loans have high interest rates, you want to be able to pay them off as soon as possible. You'll build your credit rating when you pay off this loan on time and your next loan should have a better rate.

Organize your financial and personal documents so that they can support your loan application. You'll need to have things like pay stubs, tax returns and proof of utilities or a lease in your name. Even high-risk lenders require some proof that you'll be able to pay back the loan.

Talk to credit unions in your area. You're going to have to fill out a loan application for each one and possibly have a cosigner for your loan. A guaranteed car loan has a higher than average interest rate but you still might find a better deal if you look at several lenders.

Fill out an online application to be considered for loans at various dealerships and lenders. Some sites, like forward your application to hundreds of affiliates, so you have a greater chance to get a guaranteed car loan if you have bad credit (see Resources below).

Meet with various car dealerships if you have no luck with your other applications. Many new and used dealerships offer guaranteed car loans regardless of your credit situation. Dealers will almost always have the highest interest rates on their guaranteed car loans.


  • Always look at how your loan payments will fit into your monthly budget before you accept a loan. You don't want to set yourself up for a situation where you'll default on your loan. Research your lender before you accept a guaranteed car loan. Check with the Better Business Bureau to read through the lender's history of complaints (see Resources below).


  • Avoid guaranteed loans that offer balloon payments. These loans start off with small payments but then increase dramatically after several years.

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