Before applying for a car loan it can help some consumers if they first establish some type of credit history by applying for either a secured credit card or a traditional credit card.
Unfortunately, car buyers with problem credit are sometimes easy targets and can be taken in by sales pitches from questionable used car service contract marketers that have learned of a recent auto loan.
Used car buyers, in particular those with credit issues, have been shown to be easy targets for unscrupulous sellers hoping to unload used cars that are either rebuilt or have suffered some other type of damage.
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.