By the time these applicants get to us, the first question most of them ask is “Can I buy a car with bad credit?” The answer, provided they meet income, debt and down payment requirements, is usually “yes.”
Car buyers with questionable credit are now able to pick from a larger number of certified used cars from different manufacturers at many Chrysler, Jeep, Dodge, Ram and Fiat dealers – that is, those that also offer auto loans from subprime lenders.
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.