Conventional banks are not the only sources of loans and financing, as most borrowers today will realize. A quick trip through almost any populated area will reveal payday lenders, pawn shops, title loan companies, and other businesses that are ready to extend credit to Americans.
While many will already be familiar with at least a few such types of less-traditional lenders, there are other kinds that are probably even more important in the final analysis. Companies like Consumer Portfolio Services, for example, play an especially significant role in helping millions of Americans keep up with some of modern life’s most basic requirements.
For Many, Access to Reliable Transportation is a Prerequisite for Making a Living
Few American cities have well-developed public transportation systems, so most adults must rely on other means of getting from place to place. For the average person today, that means owning a reliable car or truck that can be used for transportation to work and for a variety of other purposes.
Unfortunately, not everyone finds it easy to finance a vehicle or buy one outright. Particularly for those who have suffered credit difficulties in the past, obtaining a loan for any vehicle from a conventional bank can become impossible. With even specialized lenders of traditional kinds frequently turning down such would-be borrowers as well, it can almost seem as if buying a much-needed car or truck could be out of reach.
Flexible Lending Standards Help Car Buyers and Dealers Alike
Fortunately, there is now another option for many car buyers. Shopping at a dealer who has an existing relationship with a special type of lender can be all that it takes to secure financing and become able to buy a vehicle.
The way these arrangements normally work is that the dealer will accept responsibility for making sure each buyer is qualified. That means finalizing the sale with the dealer temporarily owning the associated loan, a position that would not be feasible for most to maintain for long.
Soon thereafter, the lender will buy the loan at previously agreed on terms, freeing up the dealer financially and allowing the process to begin anew.