If you have applied for a bad credit/no credit auto loan, there is a good chance that you will be referred to a specific car dealership. Why is this? Why can’t you just pick your own dealership?
Sometimes, a debt collection agency will take on an old debt of yours that you never paid back, and try to collect on it years and years later. This is known as a zombie debt, and you need to know how to handle the situation should it ever happen to you.
You can never be too careful with managing your credit cards. Late credit card payments are a big deal where your finances are concerned, and credit mishandling can become a very expensive mistake.
When you are seeking auto loan approval from traditional car dealerships, the process can be long and drawn out, and end in disappointment. This is because many traditional dealers don’t have F & I teams that are qualified to work with unique financial or bad credit situations.
Not all borrowers with credit issues, students or parents, will be given the option of financing a new car, but if they are and the approval is through one of the franchises listed above, they probably wouldn’t go wrong choosing any one of these “back to school” cars.
There are reasons why people are very protective of their credit ratings. Yes, having compromised credit may prevent you from getting a loan, but it can affect your quality of life in other areas as well. So, there’s a good chance that improving your credit will make almost everything seem better.
Having a low credit score makes it incredibly difficult to get approved for a car loan. While those with scores above 500 may still be able to find a loan with a subprime dealer, individuals who have scores of 480 or lower commonly find themselves out of luck in even the subprime region of lending. How can a car buyer with a 480 credit score get a car, then? There are actually two options available: a Buy Here Pay Here (BHPH) or a Rent-to-Own (RTO) car dealership. These two types of dealers focus more on your ability to pay – not your credit.