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?

Answer provided by
Eric Schad
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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