Many are suffering from the consequences of a bad credit rating and history, one of those being that they are unable to finance a car. However, through applying for a guaranteed car loan, you can now be instantaneously approved. Read these FAQ’s to help you decide if this type of loan is right for you.

Will the lender do a detailed credit check on my application?
Because you are applying for a guaranteed loan, the lenders will not bother with an in depth credit check. Beware, since they don’t know the exact status of your credit, you will have to pay a heavier interest rate. The lenders take a big risk with you and must guarantee the loan in some way, which is why your interest rate will be higher than those with good credit.

Will the loan apply for new cars or used cars?
In many cases both. With such a competitive market, lenders offer this type of  financing for both new and used vehicles.

What is the process when applying online?
Well, it varies but the application usually begins with you filling in some personal information such as your name, employment status and info or monthly income and email address. Once that is done, you will get an email detailing how you can get the loan instantly. The process is free and can take up to 24 hours for approval, which isn’t an unreasonable time frame. If you are approved, do not feel obligated to take the offer. While you will be told when and where you can get you money feel free to shop around and negotiate. Compare the lender to its competitors and find the best terms for you.

What will my interest rate be?
Your interest rate is dependent upon your circumstances and there are options for getting the interest reduced. A simple rule of thumb is that you can expect to pay around 15-17% and the rate can be as high as 30%.

How can I find the best interest rate?
As previously advised, compare, compare, compare. Don’t settle without knowing all your options. Save time and shop online lenders. By shopping online you will save a ton of time and compare rates from the comfort of your own home. No driving from bank to bank and time consuming negotiations. Online lending is just as if not more competitive than banks so take advantage of that by getting the necessary quotes.

Where do I apply?
You have many lenders to choose from. Banks, credit unions, dealerships and online lenders all want to have the best rates and the most customers. So, get your quotes and see if your local bank or credit union can beat the offer. Even 3-4% differentials can be the difference in paying thousands in interest alone.