If either you or your spouse has bad credit and that person plans on applying for a car loan, you both should be aware of how lenders must view your marital status.
Before visiting a BHPH car dealer, car shoppers with problem credit should consider the advantages of financing a used vehicle with a car loan from an indirect higher-risk lender.
Even car buyers with problem credit sometimes qualify for a new car and, if so, it’s important they understand the market if they plan on financing one with a higher-risk auto loan.
In our experience too few car buyers with problem credit understand the importance of saving in other areas to help offset the higher interest rates typical of the auto loans offered by high risk lenders.
Car buyers with problem credit often ask this question about the auto loans offered by our affiliate dealers: “Can I buy a car with bad credit and no money down?” The answer, in most cases, is “no” – unless they have a trade-in with a cash value that meets the lender’s requirements.
Military personnel with poor credit on active duty or, even in some cases, in the active reserves may find themselves eligible for what could be considered as an additional new car incentive.
Car shoppers that have experienced problem credit with either a slim credit file or one that contains mistakes can increase their chances of car loan approvals by having the inaccuracies removed and having accounts corrected before beginning the application process.