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Follow on Google News | Is there such a thing as "Good" Bad Credit Car Buyer?Not every bad credit buyer is same. Lenders look beyond your credit score and judge you on the basis of your payment history. They are ready to keep aside the number and learn more about you. It means buying a car with bad credit is easy...
By: FastAutoLoanApproval.com Is it End of the Road for Bad Credit Car Buyers? Every person's car buying needs are different, and so is his credit situation. You may have a bad credit score just like your friend's. But, it is possible that you may get approved for an auto loan, whereas he faces rejection. Remember that every person is different in the eyes of the lender. And, even though, two individual share same credit scores, lender look beyond the numbers. When is having Bad Credit Okay? When lenders are ascertaining your credit application, they do not make a decision solely on the basis of your credit score. They value the number but they also ascertain the cause leading to it. When it comes to a bad credit score, lenders categorize it into two parts: Situational bad credit and habitual bad credit. · Situational Bad Credit If the reason behind your bad credit score involves an unexpected, unpleasant situation, lenders will consider the score as situational bad credit. Sometimes, loss of job, death of a close family member or a sudden illness can force to you make late payments. Lenders consider it less risky because the analysis of your credit report shows that you have been regular in making payments before the tragedy struck. · Habitual Bad Credit If you have a habit of making late payments or missing out on payments, lenders will consider you a risky credit seeker. They avoid a habitual bad credit borrower with multiple bankruptcies, high debt-to-income ratio, and repossession. In such a situation, your credit history becomes a proof of your irresponsible financial behavior. So, if you fall in the category, you will have a hard time in getting a favorable auto loan deal. Situational Bad Credit Buyer: The "Good" One Lenders understand that maintaining a stellar credit score throughout the course of one's life is difficult. There are situations which may lead to late payments. But, unless you make a habit of missing out on payments, they are ready to cut you slack. Lenders consider situational bad credit buyers as "good" people because they believe that buying a new car can be your first step towards improving the score. By making regular payments, you will be able to increase it over a period of time. Does every Situational Bad Credit Individual get a Good Deal? Lenders will consider you in a positive light if you do not have a habit of making late payments. But, it doesn't mean you are going to get the lowest possible rates. In order to find a good deal on your next car purchase, you must first sort your finances. · Have a stable job that is capable of paying off your debts. · If you are paid in cash, report it to the IRS so that lenders have a clear idea of your income. · Pay off a few debts to reduce your total debts and improve your debt-to-income ratio. · If you are on social security, apply for a joint loan to improve your approval chances. · When it comes to making payments, explain the lenders that you are not a repeat offender. · Choose an inexpensive car to ensure low monthly payments. If your score is below 600, do not write it off as an end to your dream. You can still make a car purchase with bad credit. But, before applying for a car loan ( https://www.fastautoloanapproval.com/ Want to buy a car? Do not let bad credit become an obstacle. Learn the reason behind your credit score and work with a subprime auto financing company. Apply with https://www.fastautoloanapproval.com to obtain guaranteed auto loan and make a quick purchase. End
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