For car buyers with poor credit, understanding the type of information that can be found in their credit reports, although not as critical as knowing the actual information, may help to explain why they don’t qualify for a traditional auto loan.
While pre-owned vehicles other than certified used cars typically don’t come with any kind of warranty, most car buyers with bad credit can roll the cost of an auto service contract into their car loan.
So while we aren’t lawyers and don’t presume to give any type of legal advice, we’d like to touch on how a bankruptcy may affect the ability to buy a car if it has not yet been completed. One thing we do know is the answer to this particular question isn’t always simple.
Before agreeing to become a cosigner on any loan, but especially an auto loan for someone with bad credit, potential co-borrowers need to be aware of the risks involved as well as what their responsibilities might be.
Consumers with problem credit might want to look over results of a 2012 study on vehicle repair costs conducted by the National Highway Traffic Safety Association (NHTSA) before signing up for an auto loan for their next new or used car.
Consumers that currently have poor credit often don’t understand that as their credit scores improve during an auto loan so do their chances at having their identities stolen.