Bad Credit Auto Loans: A Silver Lining for People with Poor Rating
Having a bad credit score is frustrating, but itâ€™s no longer a problem for many people today. Some even donâ€™t mind having one, as more and more companies offer business, housing, and even car loans to people with poor credit history. It was difficult to apply for a loan and secure a service with low credit score before. But now, people can get a mortgage regardless of their credit. One of the easiest loans to qualify for is auto financing. According to reports, the number of Americans buying a vehicle using bad credit car loan is increasing every year.
A Win-win Situation Bad credit auto loan is one of the easiest ways to secure a new vehicle for people facing financial difficulty. But it usually features higher-than-normal interest rates and fixed payment terms. There are some companies, though, that offer lower rates and more flexible payment terms to attract buyers, so consumers are advised to shop around to get the best deal. Itâ€™s not just people with poor credit who benefit from badcredit auto loans. Reports suggest that car manufacturers and dealers boost their sales by offering bad credit auto financing. According to statistics, out of the entire loan amount reported in the first half of 2013, more than 27 percent was taken by people with a poor credit rating. Bad credit auto loans help dealers maximize car sales throughout the year; it is a great way to attract potential buyers.
The Best Time to Buy 2014 is the best year to purchase a new vehicle, as consumers with poor credit will find it easier to qualify and secure a loan this year. This is because the auto industry continues to tone down lending standards and uses more than the credit score to screen buyers. New auto loans totaled $405 billion from January-October 2013, the highest in eight years. Nearly a third of these loans were issued to “subprime borrower”—people with credit scores that falls below 660. Bad credit auto loans helped increase the total balance of loans in 2013 by 14.7 percent and the total number of new loans by 11.6 percent.
Resources: http://www.blueskyautofinance.com/ http://www.workers.org/articles/2014/02/12/subprime-loans-drive-auto-recovery/ http://dealbook.nytimes.com/2014/01/14/auto-loans-bring-growth-and-scrutiny-forbanks/?_php=true&_type=blogs&_r=0
Published on Mar 3, 2014
Having a bad credit score is frustrating, but it’s no longer a problem for many people today. Some even don’t mind having one, as more and m...