The term “Guaranteed Credit Approval” car loan is so catchy for people that some deceptive people are using this advertising line to deprive people in need. Guaranteed approval car loan with no credit is something that many often look for while buying a car. They must have been denied loans in near past from banks or financial institutions due to bad credit score or no credit score at all.
The aim of such scam is to gather as many people with bad credit score as possible to the dealer and exterminate those who can actually finance a car with almost impossible terms and conditions. People, who are looking for no credit car loan approval, are generally offered any unwanted car or any defective vehicle in a very unrealistic deal. The deal may include a huge down-payment or high interest rates or smaller time period for pay off or huge monthly installments or all of these together. If you deny the deal you will be thrown out. These tactics make a buyer mentally frustrated and bow down to the corrupt dealer all at once.
Since the term Guaranteed Credit Approval is misleading for customers, many states have banned this term from being advertised yet it is legal in some states. While you apply for a car loan with no credit score at all it is advisable to initially call the financial institutions first. as despite of bad or no credit score they can approve you a credit car loan depending on your good debt to income ratio. If you’re denied from there it is wiser to do a market survey via internet first.
Do a survey on multiple quotes from dealers who offer car loan with bad or no credit score. Never ever settle for a catchy advertisement. A bad credit score will definitely land you in a loan with either a comparatively high down payment or high interest rate. But it is wiser to compare and settle for the lowest rate in the quotes. Bad credit score is generally considered a risk factor for the buyer. This effect the interest calculation based on the risk factor of the driver. So the dealer has to quote for a higher interest rate. The credit score is not the only factor to get guaranteed approval for a car loan with bad credit, financial stability is the other factor