WHAT IF MY CREDIT
IS REALLY BAD
IF YOUR CREDIT RATING IS REALLY
BAD YOU MAY NOT GET APPROVED.
REALLY BAD CREDIT INCLUDES:
-
VEHICLE REPO’S
-
CHARGE-OFFS
-
FORECLOSURE
-
BANKRUPTCY
-
MULTIPLE ACCOUNTS MORE THAN
90 DAYS DELINQUENT
IF YOU DO GET APPROVED,
YOUR INTEREST RATE WILL BE HIGH.
THE BANK JUSTIFIES APPROVING
RISKY LOANS BY CHARGING A
HIGHER INTEREST RATE TO
GENERATE A LARGER PROFIT.
THIS LARGER PROFIT HELPS THE
BANK TO COVER LOSES FROM
PEOPLE FOR FAIL TO PAY
BACK THE LOANS.
WHAT YOU NEED TO REALIZE IS:
THE CAR DEALERSHIP IS A LICENSED
BANK AGENT AND CAN RE-MARK UP
THE INTEREST RATE TO INCLUDE
THEMSELVES IN THE
HIGHER PROFITS!
THE CAR DEALERSHIPS CAN MARK UP
THE FINANCE LOANS AND LEASE
AGREEMENTS 2 ½ % POINTS.
THAT IS A LOT OF MARK UP!
250 BASIS POINTS!
IF THE BANK APPROVES YOU,
AND YOUR CREDIT IS REALLY BAD,
THE INTEREST RATE WILL BE HIGH!
YOU CAN SAVE MONEY AND LOWER
YOUR MONTHLY PAYMENTS BY
REALIZING THE CAR DEALERSHIP
IS GOING TO RE-MARK UP THE
INTEREST RATE A SECOND TIME
AND THAT YOU CAN NEGOTIATE
FOR THE DIFFERENCE THE CAR
DEALERSHIP MARKED UP THE
INTEREST RATE.
YOU CAN NOT NEGOTIATE WITH THE
BANK WHEN THE BANK APPROVES YOU
WITH A HIGHER INTEREST RATE.
HOWEVER, YOU CAN CHANGE THE
PARAMETERS OF THE LOAN. IF YOU
PUT A LARGER AMOUNT OF MONEY
DOWN AS A DOWN PAYMENT.
THIS WOULD CHANGE THE RISK
FACTOR TO THE BANK AND WILL
LOWER YOUR INTEREST RATE.
