3 Times When Banks Will Refuse Your Auto Loan (And BHPH Dealers in Greenville Won’t)
After the housing crisis that led to the 2008 financial collapse, banks have naturally become wary about randomly handing out any type of loans. The Fed introduced a lot of rules. The dependency on credit scores and reports increased starkly. Although this helps to protect the country’s financial infrastructure, it does little good to common citizens with an average job. It has thus become mainstream for banks to refuse auto loan applications for a lot of seekers but fortunately, this is the 21st century and banks are not the only sources to draw out legitimate loans. This post lists 3 instances when the banks will refuse you but they are no problem for buy here pay here used car dealerships in Greenville, SC that are a lot more accommodative and understanding.
1.You are new to your job
Your paycheck might be enough to cover the premium of the auto loan but banks might consider your new job as unstable. Banks want surety that you will continue to keep your job and the more time you spend in the industry; the lesser will be the risk of losing your employment. In dealerships with in-house financing in Greenville, SC, however, this factor does not matter. The fact that you are employed with a decent pay scale is enough to approve your loan.
2.You have too many or too less existing debts
Right! Both ways you are sure to face a problem with the bank. Too many debtssuggest that you are already overwhelmed with premiums and adding another one is risky. Too less says that you are unused to paying off debt and might not keep your promise. BHPH dealers do not look into these while selling you used cars and trucks in Greenville, SC.As long as you can pay your premium, they do not judge you on your existing debt.
3.You have defaulted on credit previously
Say one month was tough for you. There might have been an unforeseen medical expense or an emergency that drained your salary. One miss on your monthly credit payment is seen as a massive factor at the banks. But this will not matter at BHPH used car dealerships in Greenville, SC as they do not look into your credit history. Here again, the future matters and not the past.
In fact, the above factors cumulatively affect your credit score. And banks decide on your auto loan application based on your score. Buy here pay here dealers with in-house financing in Greenville, SC do not lay any emphasis on credit scores and your loan approval is almost always assured.
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