Car shoppers with problem credit will find some good news in the most recent data from Equifax if they’re contemplating applying for an auto loan in the near future.
At Auto Credit Express we’ve noticed that some reports from Experian Automotive, even those that don’t directly address the issues of bad credit buyers, often contain nuggets of information dealing with subprime car loans.
Car buyers with bad credit often have difficulty locating the right kind of car dealers that are willing to help them.
One way consumers with bad credit can tell if an offer to lend is legitimate is if the lender asks for a fee up front to process a car loan application.
Usually one of the first questions we get from car buyers with questionable credit is what interest rate they’ll be required to pay on an auto loan. And while that usually can’t be predicted, borrowers rarely ask what type of interest rate it is – something that could be equally as important.
For those unfamiliar with what the phrase “buy here pay here” means, it refers to a car dealer where you can not only purchase a car, but a dealership where you can finance it, right there, as well. In this case financing is arranged with money that is borrowed from the dealer instead of a bank, credit union or finance company.
Applicants with bad credit searching for online auto loans that depend on social security or other types of disability benefits for all or most of their income need to understand that this can pose a problem for most subprime auto lenders. It can, in fact, result in a denial of credit.