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.
Consumers with damaged credit need to know that they’re really not alone and that there are lenders out there willing to work with them – they just have to know where to find them – which is where we come in.
The current lending climate for consumers with problem credit is the best it’s been since before the great recession. But while now is a good time to buy a car, buyers need to realize that using a large down payment and picking an affordable vehicle will maximize their chances of successfully reestablishing their credit.