Can I get a surety bond for a car loan?
I've heard that surety bonds can be used for certain kinds of debt. Do they extend to car loans?
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Answered on Mar 12, 2021
Surety bonds are typically purchased by a car buyer in the event that a car has a lost or stolen title. This ensures that you have a legal right to the vehicle, even if someone else procures the title or registration after you purchase the car.
However, banks and third parties can issue a surety bond that vouches that you’ll pay back a car loan if a lender is hesitant due to you having either no credit history or poor credit. If you have a limited credit history or poor credit, this is often one of the only ways to secure a car loan. Surety bonds often range from $100 to $1,500 for $10,000 worth of coverage. So while you’ll pay more upfront, you can often get approved for a car loan with the help of a surety bond.
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