Car Loans: Based on Credit Rating or Ability to Pay?

Most car loans from a bank or credit union are based just on credit score. Many consumers have had their credit bureau score fall in recent years with the economic downturn. Is ability to pay an important underwriting technique for car loan lenders?
By: Staci
May 3, 2011 - PRLog -- Every week families in America begin a search for a car.  Some are searching for new cars and others for used cars.  Financing varies as well from one consumer from another - ranging from cold hard cash, carefully saved for this purchase, and others who are looking for financing options.

When applying for a traditional bank or credit union loan, the application and stipulations are collected, sent over, and an approval notice is sent over from that bank either approving or denying the application, sometimes with amendments on the car loan details.

The underwriting process can be rather impersonal, especially if there have been credit mishaps that the client wants to explain.  

The process for dealer financing varies more from that of bank and credit unions. For these loans a client can explain what happened to hurt their credit scores.  Sometimes they lost a job, were sick and overwhelmed with medical bills, and other similar difficulties.

From there the salesperson or salesmanager will sit with the client to figure out what they can afford based on bills and current debt, rent and insurance.  This forward planning enables clients to get on their feet with a loan they can afford based on their lifestyle and obligations now.

If this is the financing experience that you're looking for in the Denver area, visit Mark's Auto Sales in Lakewood Colorado which offers the full spectrum of financing options including buy here pay here (  If you are outside of Colorado but still looking for a loan, we have a list of car dealerships with dealer financing that we have known for years and trust (

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Mark's Auto Sales is a family owned dealership in the greater Denver area since 1983. We specialize in buy here pay here financing. Whether you have bad credit, a bankruptcy or foreclosure, there is an option for you to get a late model preowned vehicle.
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Tags:Car Lot, Car Dealership, Auto Loans, Colorado, Used Cars, Local Businesss
Industry:Automotive, Financial
Location:Denver - Colorado - United States
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