Guaranteed Auto Loans

How many times have you seen advertisements with these slogans – Guaranteed Auto Loan – Car Loans with Instant Credit Approval – Guaranteed Credit Approval – Bad Credit, No Credit, No Problem? You’ve probably seen these kinds of advertisements hundreds and maybe even thousands of times, whether it’s on the internet, in the classified sections of newspapers or even on billboards posted along certain sections of major freeways.

The first thing that needs to be pointed out is that many of these ads can be misleading. "Caveat emptor" is a fancy Latin phrase that, roughly translated, means "Let the buyer beware." The idea is that buyers should take responsibility for the condition of the items they purchase and should examine them before purchase. There is also a much simpler phrase that basically states the same idea: "if it seems too good to be true, it probably is."

That being said, there are legitimate banks and lending institutions that work through car dealers that will try and help you if you have experienced credit problems. Can these lenders promise you a guaranteed auto loan? No. There is no way that they can. If you have no credit history, a recent vehicle repossession or a low monthly income, there is no way they can rationalize lending you money.

So ask yourself if the offer seems too good to be true. You don’t have to have 20 years experience in the auto business to make that kind of decision. What a legitimate company will promise you is not a guaranteed auto loan, but a willingness to help you reestablish your credit to the best of their ability. If you are serious about reestablishing your credit, you should begin by educating yourself about loan qualifications and budget and income requirements for obtaining a car loan.