Having bad credit – You can still get a car loan

Mar 17 2010 The monetary tightening policy of lending institutions has made it difficult for people to get access to cheap funds. Earlier, lending norms were not as tight and people could get loans for their house or car pretty easily. The recession that hit the globe has made the financial and other lending companies very particular about whom they lend to and only people with good credit scores or those who can offer strong collateral are finding the going easy when it comes to fetching loans for their use.

In this scenario, what happens to those with bad credit scores? Well, they can still get the car loan they want as long as they are able to meet certain conditions laid down by the lenders such as availing the loan only at specified dealer outlets and not going elsewhere. The other factors that influence the decision of the lender are the liability to the income ratio and the current monthly liabilities that such people are already having.

If the accumulated debt is greater than the income by more than fifty per cent, then they would not consider extending any loan facility and it is thus imperative that people with bad credit scores reduce their liabilities and keep it to the minimum. Squaring off the smaller loans is one step to achieve that.

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