Best Interest Rates on Poor Credit Car Loans – Valley Auto Loans

100% Bad Credit Car Loan Application AcceptanceHow to Get the Best Interest Rates on Poor Credit Car Loans

How to Get the Best Interest Rates on Poor Credit Car Loans

Poor Credit Car Loans

The auto lending industry in the country has always been severe on consumers with less than perfect credit. Most of these consumers find it extremely difficult to qualify for poor credit car loans. Those who manage to get approved for a loan are required to pay an exorbitant rate of interest. However, any credit challenged consumer looking for a better rate of interest can actually qualify for the same just by remaining patient. Valley Auto Loans is considered by many to be the national bad credit auto loan preferred lender because we specialize in offering the most lucrative car loan solutions to them. This information rich official blog is extremely popular among bad credit consumers because we regularly publish useful finance related suggestions to help shoppers looking for their own second chance auto loans.

In order to receive a better rate of interest, it is a nice idea to become an authorized user. Most of the bad credit car lenders do take a consideration of credit scores. It is possible to become an authorized user by including some additional points to the same prior to sending in any applications for poor credit car loans. This entire practice is referred to as piggybacking. Any person can become an authorized user provided he/she is not the account holder and can be included to the account. The FICO score of a credit challenged person can improve significantly if he/she becomes an authorized user with a person that has high credit limit, low card balance, and high credit score. Firstly, the credit report of the authorized user will display the added positive credit. Moreover, the addition of this new credit line will lower the debt ratio and increase the available credit of the consumer. However, there is also a serious downside to becoming an authorized user. The credit score of the consumer may take a serious beating if the account holder misses a few payments or is late in paying.

Poor Credit Car Loans – The Process

The process of piggybacking, as discussed above, is practiced by many credit repairing companies, and they regularly solicit high credit score credit card holders to allow the addition of authorized users for a pay. Just by being a part of this account, it is possible for the consumers to improve their credit score, thanks to regular payments made by the account holder. In order to restrict piggybacking from affecting the credit score of the user account, FICO 08 model was created. However, according to the Government, not considering authorized users leads to direct violation of Federal Reserve Regulation B. As a result, authorized users can’t be ignored completely in FICO 08 model for poor credit car loans.