In our debt settlement practice, folks often ask what happens to their credit during a debt settlement. The answer depends on individual facts and circumstances. But as the following article points out, even people with less than stellar credit can still get an auto loan.
Why is it still possible to get an auto loan with less than great credit? Because auto lenders have the ability to repossess your vehicle if you fail to make your payments. It’s that simple. Lenders with a security interest will more freely lend. It’s that simple. However, what this article fails to mention is that folks with bad credit will get higher interest rates. This leads to higher payments and the increased risk of defaulting on payments. Rather than paying more in interest, it may be in your best interest to keep driving your old clunker until you can get your other debts resolved and your credit cleaned up. This could mean the difference in thousands of dollars being paid back on an auto loan. Seek the assistance of an attorney experienced in working with individuals and their debts to see if you can get some form of debt relief.