Despite an increase in delinquencies, auto loans to consumers with problem credit continued to rise during the first three months of 2012.
If all or part of an applicant’s income doesn’t appear on a W-2 statement, this can adversely affect their auto loan application especially if they have bad credit.
Even with bad credit, according to the experts managing your money is the first step to credit repair and a good way to raise your credit scores before applying for a car loan.
The Federal Trade Commission (FTC) has announced that it is considering making changes to the Used Car rule that was last reviewed in 1995 – changes that could help buyers with problem credit that plan on financing their next vehicle with a subprime auto loan.
Although it doesn’t always result in an auto loan approval, consumers that have experienced problem credit and belong to a credit union at least owe it to themselves to try this option first.
Consumers with problem credit that apply for a car loan and subsequently qualify for a new car should understand the market if they plan on taking this step instead of choosing a used car.
Car buyers that have experienced credit difficulties sometimes want to know how to buy a car with bad credit and no money down – in other words they are looking for a car loan with no money out of pocket.