Mortgage Rates (Photo credit: MarkMoz12) |
Have you recently been turned down for a mortgage? If so,
you may think that you are ineligible to obtain other things of value, such as
a car. You should know, however, that in many cases, being turned down for a
mortgage loan does not mean you will get turned down for a car loan. While
getting a mortgage loan with bad credit can be next to impossible, getting a car loan with bad credit isn’t.
One of the reasons that people often get turned down for
mortgage loans is because mortgage loans are for a lot of money, a lot more
money than a car is worth. However, those same people who were deemed
ineligible for a home loan may be very eligible for a car loan.
Another thing to keep in mind is that a car can be
repossessed pretty easily. If you fall behind on your payments, your car can be
taken, plain and simple. Houses can be “repossessed” (the proper term is
foreclosed) too, but that process is a lot longer, more difficult, and more
involved than repossessing a car. Therefore, more people are willing to take a
chance on offering you a car loan than are willing to take a chance on offering
you a home loan.
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