With the increase in subprime car loan delinquencies and repossessions, subprime lenders will certainly be taking a closer look at applications and, in the long run, may be pulling back on the number of loans they approve. By following our tips, applicants will give themselves a better chance for an approval.
The newest FICO scoring model will penalize consumers with medical collections less than it has in the past. But it will take time to be implemented and, in any case, borrowers, especially those with credit issues, should continue to practice the fundamentals of good credit.
The new ResidentCredit program from TransUnion is a step in the right direction as it has the potential to help millions of
consumers with problem credit expand their credit history as well as raise their credit scores. We only wish the program embraced all renters – not just those living in complexes with 100 or more units.
By being able to better judge applicants with past due issues and insufficient information in their credit reports, FICO is taking steps to insure that these consumers will get a better opportunity to obtain credit – a situation that’s particularly relevant to car buyers with poor credit.
The newest FICO scoring model will now reward consumers that pay their collection accounts with a higher score. But while it may take time to be implemented; consumers with poor credit should get a head start by beginning the process of paying off their collection accounts, if for no other reason that it is one of the fundamentals of good credit.
Although most bank risk managers surveyed see the current level of auto loan delinquencies remaining the same for the next six months, very few see a decline. This indicates a level of caution as well as the possibility that car loans – especially to those with less than perfect credit – may become less readily available.
Water damage not only lowers a vehicle’s value, it can cause irreparable damage to a car’s body and electrical systems. Car buyers, especially those with problem credit, would do well to follow the tips from AutoTrader to help them avoid buying one of these vehicles.