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:
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.