Jasz
VIP Contributor
It is easy to see how financial misconceptions can hinder proper financing. For example, many people assume that their credit score is the most important criteria in choosing a lender. This is not always the case. While it is true that your credit score does matter, the lender may also look at what you can afford, how much money you have available to pay back loans, and other factors.
The most common misconception about financing is that if you have bad credit, it's impossible to get a loan. In fact, there are many lenders out there who will work with even the most troubled borrowers in order to provide them with the best possible loan terms.
Another common misconception is that financing is only good for those who have plenty of extra cash lying around. There are actually many lenders who make their money by lending money to people with low incomes or bad credit scores and then charging them interest rates higher than normal rates (which are based on risk).
People also tend to believe that if they don't qualify for a loan at all, then there is nothing else they can do but give up on buying a car or home entirely because there aren't any other options available. However, this isn't true at all because there are still ways for people with limited financial capability to get this solved.
The most common misconception about financing is that if you have bad credit, it's impossible to get a loan. In fact, there are many lenders out there who will work with even the most troubled borrowers in order to provide them with the best possible loan terms.
Another common misconception is that financing is only good for those who have plenty of extra cash lying around. There are actually many lenders who make their money by lending money to people with low incomes or bad credit scores and then charging them interest rates higher than normal rates (which are based on risk).
People also tend to believe that if they don't qualify for a loan at all, then there is nothing else they can do but give up on buying a car or home entirely because there aren't any other options available. However, this isn't true at all because there are still ways for people with limited financial capability to get this solved.
