Car buyers with damaged credit can, in some instances, increase their chances of qualifying for an auto loan by correcting the inaccuracies and having outdated negative entries removed from their credit file before starting the application process.
Car buyers with problem credit are sometimes offered the auto loan option of financing a new car and, therefore, should know how to read the new car sticker affixed to the vehicle’s window.
Borrowers with damaged credit need to know how they can partially compensate for the higher interest rates of subprime car loans.
From what we have seen used car buyers – particularly those with problem credit – are particularly at risk to be targeted by unscrupulous sellers that sell used cars that have been either rebuilt or have suffered some other type of hidden damage.
Members of the active military with problem credit might be able to take advantage of an additional new car discount that could lower the overall interest changes on an auto loan provided they qualify for a new car at the right franchised new car dealer.
Finance managers at car dealerships sometimes refer to it as part of “fully protecting” an auto loan when they speak with borrowers including those with damaged credit. That description is fairly accurate and before making a decision consumers should have a basic understanding of how credit disability insurance works.
Back in March Consumer Reports published the results of their latest Annual Auto Survey, which is based on subscriber survey responses covering over a million vehicles. CR’s findings include both the “best used cars” as well as the “worst used cars” in terms of reliability.
Sorting through the results we came up with what we feel are the most affordable used cars in the two most affordable categories for car buyers with less than perfect credit: