Resources for Drivers

Preferred Car Buying

Let’s talk a bit about conventional lending and who does and does not qualify. Conventional lending refers to loaning money on vehicles to individuals with higher credit scores, or “A paper” as they are sometimes called.

Most lenders look for credit scores above 700 to lend to. In today’s economy maintaining a 700 plus credit or beacon score takes a lot of work and discipline. You must pay all of your bills on time and live within your means in order to maintain a positive credit rating.

Since interest rates are based on risk it is fair to say that the lower the beacon score, then the higher the interest rate. When consumers do not repay debts within the terms that they agree to with a lender their credit rating is affected. Once your credit is affected it can take years to repair it and get it back to a 700 plus score.

There are [...]

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