Money Archive

Bad Credit Can Affect Your Ability to Buy a Car

Posted November 1, 2010 By Richard Leo

It seems obvious, but for many it is still a difficult lesson to learn. Credit history can seriously impede your ability to purchase a car, new or used. This is because auto loans use many of the same criteria as mortgage and other personal loans.

Lenders will look carefully at your history of obtaining and paying off debt as well as how much current debt you’re carrying in relation to the total credit available to you. They will also look at how much you earn and are projected to earn during the term of the loan. Lastly, they will examine … Read the rest