A great deal of discussion about purchasing a vehicle has a lot to do with how much money the vehicle costs as well as the creditworthiness of the individual looking to purchase the vehicle. In terms of credit, it is normally a discussion about if a person’s credit score is good enough to get a loan for a vehicle or their credit score is going to hinder them from being able to purchase a particular car.
However, there are many people, especially younger individuals, that have a unique problem. The issue with their credit may not be about how good or how bad it is. It may be that the credit is simply nonexistent.
A Lack of Credit
As surprising as this may be to some people, having little or no credit can be as debilitating when it comes to securing a loan as having horrible credit. While a lender may be concerned about a person’s past credit history when extending an offer to provide a loan to purchase a car, the same trepidation may be present in people that don’t have any credit or very little credit established. With no indication as to how reliable the individual has been in the past at acquiring and repaying credit, lenders can be somewhat uncomfortable extending credit, especially the amount of credit it will take to buy a car.
A Viable Solution
Fortunately, a company like Consumer Portfolio Services specialize in automotive loans for people who have bad credit and most importantly, for people that either don’t have enough credit or have no credit to speak of. These types of loans are good for a few reasons.
Most notably, they are preferable for people who need to purchase a vehicle. They are also helpful in allowing a person to begin establishing a significant credit history. Lastly, because this lender specializes in poor credit or no credit customers, they are able to offer competitive interest rates.
When a person is purchasing a vehicle, having an indirect lender that specializes in bad credit or no credit loans is a good resource. If you need to buy a car, but you don’t have enough credit, and you’re looking for ways to establish credit for the future, this service may be precisely what you’re looking for.