People like to focus on the hardships consumers face in our current economic situation. Yes the job market is rough, and with reduced job security accompanies a harder path to secure a loan. But the increased volatility means that this is a rough time for lenders as well. Lenders are forced to face the necessity of lowering certain standards to maintain a business activity. This phenomenon has helped contribute to a rise in sub-prime lending.
Sub-prime lending is when borrowers with an ‘iffy’ credit history can secure a loan. It’s not a bad thing all the time; the mainstream definition is when a lender gives a loan to someone who obviously would have been able to secure the loan in better economic circumstances. The lenders needed for additional customers plays a big role in sub-prime lending.
There are many “bad credit car dealers” who face little issue primarily dealing with customers who have bad credit scores. Don’t for one second allow talking heads on television to fool you into thinking loans are supposed to be paid back in record time by borrowers who have flawless credit scores. It’s easy to get listed in the system as a “bad credit borrower,” all you need is a default, or late payment on a loan in your name.
Being tagged as such can limit your ability to secure high-value loans. When you know you have been tagged, it’s advisable to approach a “bad credit lender.” These lenders are no-hassle, and offer terms that you’ll definitely find agreeable.
If you’re doing sensitive business with your lender, he or she may inquire about your employment status and /or source of income as we do at Franks. Establishing a good relationship, and giving all the information you can possibly give lends greatly to forming a mutually beneficial business pact. Not only do they allow you to secure loans, but by keeping your end of the bargain you can improve your credit status. The better you handle the loan, the more rapidly your credit score can improve.
Over time, dealing with a bad credit car loan can prove to be extremely beneficial to you. These lenders are very easy to find on the internet. They’re one point and click away! In the Connecticut area? Check out Franks Auto Credit today!
Have poor credit and but need a car? Contact www.franksautocredit.net or (860) 649-3000