There are many instances where borrowers get a response from their auto loan company that their loan application had been denied. In many of these cases, the lending officer tells the borrowers that their loan application has been declined due to low credit score or bad credit history. It is typical for many lending companies to only accept borrowers that have a good credit rating. When you do not meet those criteria, there are some things that you can do in order for you to gain access to credit.
A borrower is classified under subprime category if his credit score is below the average mark. Despite with a subprime rating, one could actually still have access to car financing. A number of lending companies are available that offer auto loan financing for borrowers that are in the subprime category and those that are credit challenged. Despite of their poor credit standing, they can actually get approved with their car loan although finding the right lender is an important part of the process.
Generally, the interest rates and fees for subprime auto loans are much higher. Since the risks for these types of loans are high, lenders normally charge higher interest rates. Nevertheless, borrowers do not need to settle for one-sided loan terms and extremely high interest rates. Borrowers who belong in the subprime category still deserve fair treatment even they are in a position that requires them to do a lot in improving their credit standing.
The thing that people most would want to know is how a person with bad credit can get approved for an auto loan. More importantly, where can anyone find a auto loan lender that provide reasonable rates to those borrowers that have bad credit rating. You could begin your search with credit unions. Borrowers are advised to make their way to their local credit unions and know if they have any auto loan financing programs. In general, credit unions provide rates that are much more competitive compared to those commercial lending companies especially when lending to bad credit borrowers.
Furthermore, it is important that you should also check your credit report. Once you determine that the reason your car loan's denial is your bad credit rating, you must immediately obtain a copy of your credit report. You can get a copy of your report from Experian, Trans Union, or Equifax - the three major credit bureaus. Examine your report and see if there are some errors in it that need to be corrected.
A borrower is classified under subprime category if his credit score is below the average mark. Despite with a subprime rating, one could actually still have access to car financing. A number of lending companies are available that offer auto loan financing for borrowers that are in the subprime category and those that are credit challenged. Despite of their poor credit standing, they can actually get approved with their car loan although finding the right lender is an important part of the process.
Generally, the interest rates and fees for subprime auto loans are much higher. Since the risks for these types of loans are high, lenders normally charge higher interest rates. Nevertheless, borrowers do not need to settle for one-sided loan terms and extremely high interest rates. Borrowers who belong in the subprime category still deserve fair treatment even they are in a position that requires them to do a lot in improving their credit standing.
The thing that people most would want to know is how a person with bad credit can get approved for an auto loan. More importantly, where can anyone find a auto loan lender that provide reasonable rates to those borrowers that have bad credit rating. You could begin your search with credit unions. Borrowers are advised to make their way to their local credit unions and know if they have any auto loan financing programs. In general, credit unions provide rates that are much more competitive compared to those commercial lending companies especially when lending to bad credit borrowers.
Furthermore, it is important that you should also check your credit report. Once you determine that the reason your car loan's denial is your bad credit rating, you must immediately obtain a copy of your credit report. You can get a copy of your report from Experian, Trans Union, or Equifax - the three major credit bureaus. Examine your report and see if there are some errors in it that need to be corrected.
About the Author:
This article is written by Michael Eoff. Go to this site and get more information about bad credit car loans and low rate car loan.
0 comments
Post a Comment