Almost everyone worldwide is fascinated by vehicles, and if they have a chance to own even a single one, it can be the most significant moment in their lifetime. However, not everyone can afford a car by paying cash, and that why car loans were introduced to assist this kind of individuals. But also low credit score can be another stumbling block to own a car.
But, used and new car loans are accessible to anyone with a bad credit score. If you are among those who have difficulties in securing a car loan, or lenders have to reject your car loan application mostly, with this article you will find out that it is possible to get a car loan even if you’ve suffered poor credit score. The following reasons will show how getting a car loan is not difficult also if you have a low credit score:
Increase in Automobile sales
According to automobile sales statistics, the total number of cars sold in 2012 was 7.3 million. The previous year, there was an increase of 14.8%. The vehicle manufacturers who are continually pushing for this sales are the ones who attribute to this factor.
A decrease of delinquency
The lowest percentage of delinquency rate refers to the loans that have not yet paid by the lenders. According to a TransUnion report of 2012 stated that delinquencies of auto loans have a drop down to 0.36% which less than the year 2011 when it was 0.46%, a 4th quarter result. These figures precise prove that lenders are more diligent and severe in planning regular payments
Gaining the Investors Trust
Investors have been buying securities in the form of car loans that seem to be profitable and comparative. They are much better compared to home loans since vehicles have become a primary need for almost everyone. Even though homes are much more critical, but cars have become a significant need to requirements our daily lives.
Get ready for Bad credit loan
Before a car loan is provided to someone with a low credit score, there are essential points that must be highly considered to avoid the regrets later:
- It is advisable to choose low price but yet capable vehicle
- Be ready to pay a high interest since it is your first loan after the previous one was dropped.
- Choose an auto loan with short term to avoid an increase of auto loan upside down.
- If you want to increase your credit score, you need to persist on regular payment.
- Most borrowers already have lock-in periods that cannot a trade-in or even refinance a car.
Due to many changes that have taken place in the current economy, best used car websites always provide and will still offer poor credit car loan options to every individual at reasonable interest rates. Grab an opportunity by applying today to nearest car loan dealership near you.