When given the choice of financing a new car, we suggest that buyers with credit issues choose an affordable compact or subcompact – vehicles that are also fuel efficient and inexpensive to insure. Opting for the shortest loan term possible, once they’ve reestablished their credit these consumers will be in a much better position for their next loan.
The latest credit union report from TransUnion has some good news and some bad news for consumers with less than perfect credit. The good news is that they plan on increasing the number of car loans they offer. The bad news is that they also plan on keeping their risk levels low. But despite the mixed results, we still believe even buyers with credit problems should first explore the possibility of a car loan with their credit union before checking out other lenders.
Credit-challenged consumers have to decide for themselves if the added price of a certified used car makes sense. The information contained in the IntelliChoice report, however, should serve as a guide for those borrowers considering a certified pre-owned vehicle.
Confused about what exactly rent to own car programs are? At their core, rent to own car programs are just another form of auto loan, although they are generally easier to qualify for since most dealers don’t run a credit check on renters.
Especially if your credit scores are less than perfect, the smart thing is to look for in a new car is a best buy. Checking out the list of vehicles from Consumers Digest can help steer you in the right direction.
Subprime lenders will typically allow overtime pay to be added to an applicant’s regular pay if it can be proven that the overtime pay exists and that it is consistent over time.
Some subprime lenders will allow income from a part-time job to be added to an applicant’s regular income.