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.
Car shoppers that have experienced problem credit in some cases don’t take their overall financial situation into account before choosing a vehicle for a high risk auto loan.