Tuesday, April 8, 2014

Don't Make Assumptions

Mortgage Rates
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.

The bottom line is this: don’t jump to conclusions! Just because you get turned down for one type of loan, be it a mortgage loan or anything in between, doesn’t mean you’ll get turned down for a car loan. In fact, just because one car lender turns you down doesn’t mean that every car lender will, especially if you’re willing to work with organizations that specifically offer car loan with bad credit deals, such as AutoFinanceOptions.com

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