Have you ever been turned down for a car loan because of your credit score or financial situation? This may be because certain lenders consider you to be a high-risk borrower, and the majority of them do not like dealing in uncertainty.
Why Do Lenders Consider Me a High Risk Borrower?
Providing financing is always going to involve some level of risk. Lenders want to help out their customers by letting them borrow money, but they are also trying to minimize that risk and run a profitable business. This is why each lender sets up their own standard of qualifications that they want to see from an applicant. If you don’t meet their standards, they will deny you.
Here are some different types of attributes that make someone a high-risk borrower in the eyes of the typical auto loan provider:
- A low credit score
- A thin or non-existent credit history
- A low income
- A high debt-to-income ratio, meaning they have a lot of debt in comparison to their yearly income
- A short period of time on the job
- Accounts that are currently delinquent or in collections
- Previous vehicle repossessions in the last couple of years
- Going through a bankruptcy or have been through one in the last few years
If you apply for an auto loan with one or more of these issues, you will often find that the traditional lender is not willing to take on the risk you carry.
What If I’m High Risk and Need a Car?
If you have credit or financial issues that classify you as a high-risk borrower, there are still ways to get approved for an auto loan. Instead of dealing with those picky traditional loan providers, you need to seek out a subprime lender.
A subprime auto lender specializes in helping people with credit or financial problems get financed. These lenders and dealers are still going to have a set of criteria or requirements, but they are much more understanding.
We Can Help You Get a Car
No matter what your credit or financial situation looks like, Suburban Auto Finance can help you get the car you need. Our team of subprime experts can find the auto financing plan that makes sense for you. We truly believe that you deserve a second chance, so let us help you get financed. All you need to do to start the process is fill out our safe and easy online application and then we’ll be in touch.