What Are The Benefits of Instant Car Loans?

Instant car loans are often called "guaranteed" or "pre-approved" loans because they require very little in the form of an application. Most borrowers with reasonably good credit will qualify for these loan options, based on very short credit check. The loans are often distributed online through instant loan websites, and they rarely require a face-to-face meeting. Most people looking for these types of loans want something convenient and fast.

Easy to Shop Around

When you are shopping for instant car loans, you can usually get a quote through a very simple questionnaire. By putting in some basic facts about yourself, such as salary, estimated credit score and amount of financing, you will get a quote without much hassle. This means you can go to more than one website and enter the same information within the span of a few minutes. You can get 5 or 10 quotes without breaking a sweat, making rates and terms easily comparable between loan companies. 

Do Not Require Lengthy Applications

The application process for an instant loan is only a fraction of what it takes to secure other types of banks or dealer financing. The lender usually relies on a formula to determine your monthly payments and interest rates. They will not consider supplemental information from you, such as personal reference letters. They are able to extend these loans so quickly because they disregard much of the supplemental information. This means you are only judged on financial criteria that can be expressed in a one to two page form. 

Good Credit Easily Approved

If you have good credit, you are generally guaranteed approval. Your credit score will be the number one criteria assessed by these companies. This is particularly useful for young people who may not have high salaries or long credit histories. So long as they have not missed payments or defaulted previously, they will generally receive a loan. Many times, the loans can have higher interest rates but if you just want to be approved quickly, this is a good route to take. 

Fast Approval Process

Because you are being judged on so few criteria, your loan will close very quickly. Often, the approval process is done solely through a computer formula, and you will have your quote within minutes. When you accept the quote online, you will have financing typically within 24 hours. For car loans, this is mostly important if you are looking to capitalize on a deal that may not be there come the end of the week. It can also be key when you are purchasing a new car you know will not be around for long.

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