To begin with, knowing your credit scores is important. If you doubt that’s true, just ask the President. Secondly, the FICO Score Open Access program, once it becomes more widely available, could certainly help all consumers – even those with poor credit, as this would allow borrowers to see the same credit score that lenders use to manage their accounts.
Borrowers having problems paying their car loans should call the lender and explain their situation. Not only is repossession is a black mark on their credit reports – often preventing them from getting a car loan for at least a year, it could end up costing them hundreds if not thousands of dollars in taxes owed to the government.
Although there typically aren’t many of them available, executive-driven program cars offer a third viable option for credit-challenged borrowers wishing to finance a used car. Buyers should be sure to verify this with a vehicle history report as well as have any vehicle they’re considering buying inspected by an ASE Certified Master Mechanic as well as a frame specialist.
Purchasing a demo car is a great way to save even more on a new vehicle. Just be sure it hasn’t been titled or damaged and that the additional discount for mileage is fair.
Borrowers, especially those with past credit issues on tight budgets, should never confuse price with cost. Price is what you pay for a vehicle while cost includes the overall expenses including gas, insurance, maintenance and depreciation.
In addition to being nearly as affordable due to lender programs and generally having fewer miles, newer used cars are less likely to be stolen and, if they are, more likely to be recovered than older model used cars.
The new definition of consumer credit, as it relates to the Military Lending Act, recently proposed by the Department of Defense could go a long way toward protecting members of the U.S. military from predatory lending practices.