It is holiday season. Everyone is in a good mood. Especially the companies advertising pre-approved bad credit loans seem to be on a spending spree. Not only customers are being offered no questions asked, pre-approved car loan, they are also being promised extremely low-interest rates (under 3%).
Pre Approved Loans with Low Interest rate
You know the advertising people; they will say anything to get your attention. People, who have bad credit like to hear these words. Pre-approved, low-interest rate. Advertisers use these to ring bells in your ears. They say something like this.
“Whatever is your credit score, good or bad, Come to us, we have a pre-approved car loan with unbelievably low-interest rate and in spirit of holiday season, let’s throw in zero down payment too. Whatever makes you happy?
You will be Lucky to Get a Loan
Well, if you promise, not to kill the messenger. I would like to give you the bad news. There is always a cost to bad credit. If you credit history is not good, you have to pay higher interest rates. If you credit score is bad, you will have difficulty in even getting approved for a car loan. Forget about pre-approved. You will be lucky if you get approved after you apply for a loan.
Expect a really High Interest rate
With a bad credit score, your chances of getting a pre-approved car loan are slim. If you manage to get your hands on one, the interest rate will not be very attractive.
Zero Down is a Myth for Poor Credit
People who are have a poor credit history, have no chance of getting a zero down payment, pre-approved car loan at low-interest rate. They don’t have a chance of getting a car loan without at least 40% or above down payment. Zero-down payment loan is a myth for whoever has a bad credit score.
Pre-approved Bad Credit Auto Loan at Low Interest Rate (BS)
So, now the question is why those advertisers are spending top dollars to convince you that they can get you a pre-approved bad credit auto loan at low-interest rate. Well, the answer is simple. They want access to your personal and credit information. They will use it to sell you some other products like bad credit repair programs. They might just will scam you. So this holiday, auto buyers should be on their guard.
Face the reality, Dont buy the car
If you don’t have good credit, I would suggest, not to buy a car. Get your credit in good standing first. High interest rate on an auto loan will burden you further as monthly installment of your auto loan will be quite high. So, think and think again.
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