according to information from Experian Automotive, consumers financing a vehicle from a high-risk lender are roughly twice as likely to have that loan end in repossession versus buyers financing with a conventional vehicle loan.
Car buyers with damaged credit don’t always understand that getting turned down for an auto loan can sometimes be the result of incorrect information in their credit reports.
Car shoppers with poor credit that receive all or some of their income by getting paid “under the table” typically don’t realize why this practice could very well prevent them from getting approved for a car loan from a high-risk lender.
Car buyers hoping to repair their poor credit with an auto loan should be aware of some of the latest tactics used by skilled identity thieves.
But for most consumers with questionable credit that need a vehicle, these loans are one of the few ways they can simultaneously raise their FICO scores while ensuring that they have a reliable way to get to and from work. And while most of these folks realize they have less than perfect credit, many ask themselves how they’ve gotten into their current financial troubles.
Even if finances get tight, once buyers with questionable credit have paid off an auto loan taking a chance on a car title loan could be risky.