When applying for a car loan, the thing that auto lenders consider is your credit score. The logical reason behind this is to make sure that you have the ability to pay back the loan. In simple terms, auto lenders would like to know if you are credit worthy.
However, the downside of this is that auto lenders generally make a “short cut” by just looking at you credit score and overlooking your credit report as a whole. Although the practice of looking solely at your credit score is good if you have an excellent credit score, this is the opposite for people with bad credit score. If you are having difficulty applying for a car loan because of your low credit score, here are some tips to consider for bad credit loans guaranteed approval:
1. Find car loan lenders willing to approve your loan.
When searching for car loan lenders, limit your search to those who call themselves as “car loans for people with bad credit”. When using the Internet to find car loan lenders, you may also try using keywords such as “bad credit loans guaranteed approval”, “bad credit car loan lenders”, or “bad credit auto lenders”. Those types of car loan lenders will consider your credit report as a whole and not just your credit score.
2. Make a list of at least five different bad credit car lenders.
The best way to find these lenders is to have a list of not less than five. Avoid applying your car loans with just two lending companies for you are decreasing your chance of getting your loan approved.
3. Do a background check on the lender before making your final list.
Whether you apply your car loan in person or over the phone, remember to research about the lending institution first. It’s best to check what customers say about the lending company. You may go to forums or chat rooms to get hold of first hand knowledge.
4. Do not forget to negotiate.
One secret to guaranteed approval for credit loan is to learn to negotiate. Make sure to negotiate with every company that gives you an offer and find out if they can give you better terms with your car loan.