If you are looking for a car loan but have a bad credit history or no credit history at all, you may have heard of guaranteed car finance. This is a type of car finance that claims to offer approval to anyone, regardless of their credit score or situation. However, before you apply for guaranteed car finance, you should know what it is and how it works.
Guaranteed car finance is not a legal term, but a marketing term used by some car dealers and brokers to attract customers with poor credit. It implies that you will get approved for a car loan no matter what, but this is not always the case. In fact, there is no such thing as guaranteed car finance, as every lender has to perform some checks and assessments before lending money to anyone.
However, this does not mean that guaranteed car finance is a scam or a lie. It simply means that some car finance providers are more willing to accept applicants with bad credit or no credit than others. They may have more flexible criteria, lower interest rates, or offer alternative options such as hire purchase, personal contract purchase, or car leasing. They may also require a guarantor, a larger deposit, or a trade-in vehicle to secure the loan.
The benefits of guaranteed car finance are that you may be able to get a car loan even if you have been rejected by other lenders, and you may be able to improve your credit score by making timely repayments. However, the drawbacks are that you may have to pay higher fees, charges, and interest rates, and you may end up with a car that is not suitable for your needs or budget.
Therefore, before you apply for guaranteed car finance, you should do some research and compare different offers from various car finance providers. You should also check your credit report and score, and try to improve them if possible. You should also make sure that you can afford the monthly repayments and the total cost of the loan, and that you understand the terms and conditions of the contract.
Guaranteed car finance may sound like an easy and quick way to get a car loan, but it is not a guarantee of approval or a good deal. You should always be careful and responsible when borrowing money, and seek professional advice if you have any doubts or questions.