Mike didn’t want Kelly to worry, so he had started to look for a new car immediately after the old one went out of commission. And while he had a good job as a line manager with a major auto manufacturer that he had been at for 2 ½ years, he also had a major blemish on his credit history. The clock was ticking, and he didn’t know where to turn.
Be especially careful when filling out a credit application, making sure all the information entered – especially income – is accurate. If a dealer advises overstating income, the best thing to do is to walk away from the deal and the dealer.
Jeff’s situation isn’t as great as Joe’s. Unfortunately, he has bad credit. He only has $500 for a down payment, no extra cash to cover necessary fees, and no trade in. And he needs a car now. He knows he has a slim chance of getting approved, and doesn’t have time to go through the process multiple times only to be turned down. How exactly did Jeff get what he needed?
When your credit is damaged, your options for auto financing of any kind are dramatically reduced. So, of course, walking into any old dealership and saying “finance me” is out of the question, and honestly, a waste of time. So, where do you go?
The moderation in subprime auto loans means that high-risk lenders can afford to be more selective. It also means that potential borrowers with less than perfect credit should check their credit reports, know their credit scores and plan on a larger down payment to maximize their chances of success.
Vehicle repossession is never a good thing and a black mark like this can linger on a credit report for seven years or longer. Multiple repossessions are even worse and, for the most part, consumers must wait until just one appears in their credit file.