Consumers responsible for making child support payments as well as those who depend on this type of income should know how these situations, especially if they have poor credit, could impact their chances of an auto loan approval.
Because they may have been turned down for a conventional car loan and/or they cannot find a franchised new car dealer willing to help them, every year at least some borrowers with problem credit settle for an auto loan from a “tote the note” car lot.
Of particular interest to car buyers with problem credit as well as a question we frequently get asked is whether we can offer them a pre-approval on a car loan.
From our experience the results pretty much speak for themselves when consumers with damaged credit allow some time before applying for a car loan to, among other things, check their credit reports and correct any mistakes.
It’s an unfortunate fact but consumers with damaged credit are far more likely to find themselves with an auto loan for a vehicle that has been involved in a flood.
We continue to be surprised by the fact that quite a few borrowers with damaged credit still don’t understand why the credit scores used by car dealers often aren’t the same as the one they think they have.
Finance managers have been known to present the product to problem credit buyers as “protecting an auto loan” which is actually a fairly accurate description. But the fact remains that credit-challenged borrowers, in particular, should have a basic understanding of how credit life insurance works.