Although many borrowers are unaware of the advantages of auto loan refinancing, consumers with low credit scores need to realize that they may not quality for this loan option, especially if their loan is fairly recent.
Although the service area is currently very limited, we see the program offered by Metromile, which includes its “pay as you drive” billing model, to be of real value to drivers – even those with less than perfect credit.
The current lending climate for consumers with problem credit is the best it’s been since before the great recession. But while now is a good time to buy a car, buyers need to realize that using a large down payment and picking an affordable vehicle will maximize their chances of successfully reestablishing their credit.
Per-mile car insurance certainly has the potential to help low-mileage drivers – even those with low credit scores – as the additional costs associated with a driver’s poor credit can be at least partially offset in a Metromile policy by those driving fewer than 10,000 miles per year.
One of the keys to successful repairing your credit with a subprime auto loan is choosing a dependable vehicle to finance. The fact that the two latest studies from J.D. Power highlight the Hyundai Accent – one of the most affordable new cars available in the U.S. – is certainly good news for car buyers with credit issues.
For consumers with problem credit, getting financed can be hard enough. But once they’ve taken delivery, it’s time to take steps to ensure their new ride isn’t stolen.
The fact is that borrowers, especially those who are credit-challenged, should always maximize the down payment amount while keeping both the loan term and payment-to-income ratio to a minimum. By following these guidelines, buyers can avoid financing an unaffordable car.