Car Buyer Labs

Car Buying Advice, Tips, and Reviews

A person is shown thinking about her poor credit score and considering a guaranteed credit approval car dealership near you.

How Guaranteed Credit Approval Can Help You Get Behind the Wheel

There are many fantastic vehicles out there that can offer drivers utility, practicality, and adventure, and many dealerships do everything they can to help drivers obtain this in a way that won’t break the bank. The most nerve-wracking part of buying a new car is the financial side of things. Especially in today’s economy, it can be difficult to wrap your head around paying for that next vehicle. Fortunately, there are various programs in place to help drivers get behind the wheel. One particular program that many dealerships take part in is guaranteed credit approval, which helps to make vehicle financing more accessible. Not all dealers offer this option, but once you find a guaranteed credit approval car dealership near you, you can take home that model you’ve been looking at in no time.

Guaranteed credit approval helps to make the car buying process easier for those with tighter financial constraints, as well as those with a bad credit rating. Many dealerships believe that these factors shouldn’t impede drivers from taking home the vehicles they need, which is why they make various programs such as this one available. Guaranteed credit approval is a process just like any other financing process when buying a car, but there are key differences that set it apart from programs such as leasing or standard financing. When purchasing your next vehicle, it is important to consider which of these avenues you should consider. For some, guaranteed credit approval may be the best option, while for others programs like bad credit loans or purchasing outright might serve them better. Either way, there are many dealerships out there prepared to help drivers in more dire financial situations, so that they never have to worry about whether they’ll be able to get that next great model.

A white 2018 Toyota Camry is shown driving on a highway.

How Does Guaranteed Credit Approval Work?

At its core, guaranteed credit approval is all about being more lenient with the credit requirements of drivers attempting to take out a loan. Those who utilize guaranteed credit approval when buying their car will not be required to supply a credit check. Instead, the dealership will determine what financing rate the driver qualifies for based on their income. This allows drivers with poor credit scores to sidestep the need for approval based on their credit score, therefore making it much easier to get approved for a loan. It’s granted based on how much money you make, and presumably can spend on a loan, rather than any previous track record, good or bad.

Though guaranteed credit approval can make getting approved easier, this does come at a cost. Those who choose to get approved through guaranteed credit approval will likely have to deal with higher monthly payments, as well as higher annual percentage rates. Additionally, loan terms with guaranteed credit approval financing can, at times, be shorter than the average loan term, which can also raise the monthly rate. However, when working with your dealership’s financing team, this can easily be managed so that you’re still working with a rate that is feasible.

There are also a variety of long-term benefits that accompany guaranteed credit approval. The approval process tends to be shorter when going through the guaranteed route, meaning you’ll be behind the wheel faster and more efficiently. Additionally, this program offers drivers with bad credit scores the opportunity to build a better credit rating, as long as monthly payments are made consistently and on time. By doing this, drivers will have better opportunities for loan approvals the next time they buy a vehicle, meaning that lower monthly rates, longer loan terms, and a wider selection of vehicles will be at their disposal the next time they go through the process. Guaranteed credit approval financing aims to give drivers the opportunity to not only take the vehicles they want home with them but also the ability to improve their credit situation so that even more car-buying opportunities become available to them down the line.

The Difference Between Guaranteed Credit Approval and Bad Credit Car Loans

Though guaranteed credit approval and bad credit loans exist in the same vein, there are a variety of differences between them. One of the primary differences between these two financing options is the certainty of approval. While bad credit loans do help those with lower credit scores get the car they’re looking for, they do not, by any means, guarantee approval. Guaranteed credit approval, as the name suggests, creates a much higher margin for approval than any other financing option.

Another key difference to consider is interest rates. Both bad credit and guaranteed credit financing options feature higher interest rates than traditional financing. However, bad credit loans tend to feature interest rates that are somewhat lower than guaranteed financing, as it can be slightly more difficult to get approved.

This does, however, come at a cost. Along with the slightly lower interest rates that bad credit loans offer comes a higher down payment, which, for many, can make or break their ability to get the car they want.

Essentially, one of the main differences between bad credit car loans and guaranteed credit approval is the range of accessibility. With bad credit loans, a larger range of vehicles may be available, but it may be more difficult to get approved. Even if one were to get approved, they may have to deal with higher down payments. Guaranteed credit approval essentially gives a slightly more limited selection of vehicles and annual percentage rates with the benefit of higher approval rates and smaller down payments. Of course, guaranteed credit approval also depends more on factors like income and employment stability when attempting to get approved, whereas bad credit loans are simply more lenient with bad credit scores, but are still based on credit.

A red 2022 Toyota Corolla SE is shown driving on a city street.

Finding the Right Payment Plan

When all is said and done, the right payment plan is dependent on your personal situation. It can be daunting to face the idea of paying for your next car, especially when it seems so many economic and financial factors are outside of your control. Though this can often make getting a new car seem impossible, there are many dealerships out there that are prepared to extend kindness and empathy toward you and your situation. With programs such as guaranteed credit approval, the anxiety regarding how you’ll be able to get approved and pay for your vehicle can be alleviated, allowing you to focus more on finding that perfect model and less on whether you’ll be able to afford it.

If you’re in a difficult financial situation or find yourself with a lower credit score, it is possible to get approved for a loan. The key is finding the right dealership. There are many dealerships that offer programs like guaranteed credit approval that can make the car buying process easier, and they’ll be happy to help you find the best way to get your loan approved and set you up with a rate of payment that makes getting your dream car more accessible. No matter how difficult your financial situation may be, there are programs in place to reduce the stress of getting behind the wheel, so you can focus on the adventures ahead of you.