Approved Bad Credit Financing: All You Need to Know

Approved bad credit financing is a common term sprayed around by subprime financial houses and the US used car industry. And it means exactly what it sounds like. When someone offers you approved bad credit financing, it literally translates into the fact that you are “approved” to receive a loan even if you have a “bad credit” to show. However, that definition only scratches the surface of the concept and this post helps you to dig deeper before applying for one and enjoying its benefits. You deserve the full information to make an informed decision.

You are approved for a certain amount

In other words, you cannot apply for any random credit sum and expect to get approved. The top used car dealer with approved bad credit financing in Greenville, South Carolina, will look into your credit score, maybe your credit report as well, and offer you a loan that you can afford and sell you a car accordingly. This may seem like a disappointment at first but the cap actually prevents you from going into bankruptcy. While the conventional financial houses will simply turn you away, the subprime ones will entertain your request and approve some amount for you.

The interest rate is more than the prime rates

Banks extend their loans to only prime credit holders and hence, charge prime interest rates. The ecosystem they transact in is naturally secure. Approved bad credit financing institutions operate in a risky environment and this is why they have to charge an interest rate higher to assure their return. However, genuine dealers that can get you approved with bad credit financing in Greenville, South Carolina, will never charge you sky-high rates. And if you can make a high down payment or take the credit for a low timespan, the interest rates charged will not matter at all.

You rarely need a co-signer

One way of getting prime loans is to find yourself a co-signer who is willing to vouch that he/she will take care of your credit should you fail to pay up. In a way, that takes away your personal autonomy. Instead, if you buy cheap used trucks in Greenville, SC, from a top buy here pay here dealer with approved bad credit financing, the only guarantee you will need to give them is the income certificate of your current job. As long as your paycheque covers the monthly payments, you are good to go. You do not have to depend on anyone to be your guarantor.