Credit Issues Not a Barrier for Consumer Portfolio Services

Credit issues, such as past problems, a low credit score, or no credit history, at all have a direct impact on buying big-ticket items. Land, houses, and vehicles are examples of purchases that fall under this category. Land and a new house can be acquired in the future.

Cars are Necessary Now

Vehicles are required sooner than other large purchases so people can get to work, school, and the grocery store. They are vital depending on residential locations. Big cities have excellent mass transit systems, making it easy to get from place to place without a vehicle. Rural areas often lack any type of bus systems, so it is harder to get around.

People with a stellar credit history have no problems getting the vehicles of their choice from any dealer. Those with credit issues are likely to be denied bank loan and financing opportunities. A vehicle is needed, but access to late-model and safe ones is limited. Dealers that offer credit building programs can do so utilizing Consumer Portfolio Services.

Eliminating Most Barriers

Selling vehicles is difficult when pre-owned ones are not preferred by the customer base. Getting used vehicles sold and off the lot is possible when credit barriers are eliminated. How do dealers accomplish this when traditional financing is not possible? They need to find an alternative and progressive lender.

Loans are approved and contracts purchased through indirect lenders with high return rates. The dealer does not have to worry about managing the loan and collecting late payments. Those processes are taken over by the lender, leaving more financial resources for customers with good credit.

Credit Still a Component

Companies that provide alternative lending sources are cognizant of the risks involved. They do have a responsibility to investors and need to minimize losses for continued success. Not everyone will be approved as loans are reviewed prior to acceptance of contracts. People with consistently bad credit, for example, are not likely to receive financing.

A college student with no credit history and no job presents a high risk of defaulting on loan payments. The company must spend time and money following up with that student, sending the loan to a collections agency, and possibly having the vehicle repossessed. This scenario is avoided by smart lending. Those serious about restoring credit are the best candidates for approval.

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