For car buyers with questionable credit there are a number of situations in which the protection provided by car gap insurance for an auto loan makes sense.
Even as consumers with problem credit rebuild their credit with an auto loan there’s an increasing chance that their personal information could be hijacked.
Car buyers with bad credit that are interested in easy qualify car loans should probably attempt to raise their credit scores before applying – which is something that requires a basic understanding of how the FICO scoring system actually works.
For consumers that have experienced recent problem credit need a car loan, there’s a real good chance that at some point in the process they’ll need to furnish the lender with a list of personal references.
For car buyers with problem credit it’s important that they understand that how their income is reported can affect an application for credit for an auto loan. This is especially critical if all or even a portion of their income comes from working for one or more employers as an independent contractor.
Auto loan decisions, even for car shoppers with poor credit, are at least partially based on credit scores. But especially for those with less than perfect it can help to first check out all three credit reports before beginning the application process.
It may not happen too often, but when an applicant with poor credit either forgets to or brings in the wrong type of identification sometime during the car loan process or, worse still, at the time of delivery it can bring everything to a halt.