Borrowers with problem credit that are thinking of applying for an auto loan should be encouraged by the latest report from Experian Automotive that shows an increase in subprime lending during the second quarter of 2013.
It’s especially important that consumers with poor credit understand the impact that traveling from dealer to dealer or submitting multiple online car loan applications and the credit inquiries that follow might have on their credit scores.
It is a fact that used car buyers with problem credit as well as traditional borrowers with good credit that have, at least in the past, been contacted by call centers fradulently representing themselves as used car warranty companies.
When contemplating an auto loan modification, borrowers that have experienced problem credit are taking the chance that they could be taken for a ride – and not a good one, at that.
It has been shown that car buyers with questionable credit are especially susceptible to being sold a used car with that has suffered water damage of some kind.
Consumers with problem credit that need a car loan should always be looking for any way they can reduce the overall expenses inherent in these types of loans.