Many Americans have discovered how dealer originated financing can open up new options when it comes time to buy a car or truck. Especially for those whose credit records might not qualify them for loans from banks and other traditional sources of financing, dealers who are equipped to help can make a real difference.
Companies like Consumer Portfolio Services enable this increasingly popular type of lending by buying loans from dealers that meet their standards. In addition to producing real benefits for consumers in the process, they also support the dealers who partner with them in important ways.
More Than a Mere Source of Financing
While serving as the lender who allows dealers to issue loans to vehicle buyers is very much the cornerstone of what companies like this do, they also often provide other services of value. In particular, a lender like this will sometimes support its dealer partners … Read the rest
The general understanding of the public is that payday loans are bad and credit cards are better. Is this fundamentally true? Is this possibly a misunderstanding of how both credit cards and payday loans, work? There may be an underlying misrepresentation of both of these borrowing options in the public view.
Credit Cards are Abused
Borrowers tend to unintentionally abuse credit cards. People borrow unreasonably, without dedicating the proper time and financial commitments required to borrow sensibly and fairly. For example, look at a typical credit card limit. The limit may be $2,000. The credit card company will promote further increases after a single few good payments. In time, the credit card balloons past what the borrower could initially afford without any increase in their pay.
The initial credit card limit was established based on income. The $2,000 is not pulled out of thin air. If a borrower borrows and … Read the rest