The latest program from both Hyundai and Kia is certainly a step in the right direction by offering free, updated FICO scores to borrowers. Unfortunately for most credit-challenged car buyers, not only is its focus too narrow, what’s left unsaid is the minimum credit score or profile required to qualify for it.
The third quarter 2013 auto loan delinquency rate has officially been released by TransUnion, which shows an increase in balances and number of financing opportunities to subprime borrowers.
Credit scores are a complicated but important part of our adult life, and it’s likely that there is more that goes into determining those scores than you think. If you’re not careful you could harm yourself in more ways than you’re aware of.
We all know that the best practice to taking out a loan is to compare multiple offers against each other, but will that many inquiries on your credit hurt your scores?
We continue to be surprised by the fact that quite a few borrowers with damaged credit still don’t understand why the credit scores used by car dealers often aren’t the same as the one they think they have.
Consumers with problem credit thinking of applying for an auto loan need to first check their credit reports to be sure they meet the minimum in-bureau requirements of the majority of subprime lenders.
It’s especially important that consumers with poor credit understand the impact that traveling from dealer to dealer or submitting multiple online car loan applications and the credit inquiries that follow might have on their credit scores.