Buy Here Pay Here Loans: Credit Score or Ability to Pay

You may have heard buy here pay here dealerships say ‘Everyone is Approved.’  At a buy here pay here the underwriting process is a little bit different than with a traditional bank.

A car loan with a traditional bank is approved by how your credit looks on paper.  You either have the credit score and income or you don’t.  You’re either approved or not.
A buy here pay here loan understands that you may have bad credit, but how is your ability to pay for that car loan now?  While Mark’s Auto Sales does pull a credit report, it is to see when the credit challenges were and verify your residence history.
An important component of the loan approval is your ability to pay for that car loan now.  How stable are you at your employment?  Sometimes that means a co-signer is necessary to bring more stability to the loan, and therefore allowing Mark’s Auto Sales to approve the loan.
Another component of ability to pay, is matching the vehicle with your ability to pay.  Shorter work and residency times create invariables to your income, and how you can pay your bills.  A smaller or irregular paycheck from switching jobs continuously or, higher and lower rents from moving and moving expenses cut into the budget for making payments.  Based on your work and residence history, the underwriting system wants to make sure you get into a loan you can afford, rather than one that you’re strapped to make each month’s payment.
And of course, at Mark’s Auto Sales, prove yourself by making your payments on time for 18-24 months of a 40 month loan and we can trade you up into another vehicle without being underwater in that loan!
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