One of the fastest ways to determine a consumer’s loan risk is to research his ability to repay an automotive loan. Late payments? Missed payments? Refinancing? It’s all there on credit reports, and it can determine if the risk of making the loan is worth it. So how do you […]
Auto Loan Credit Reporting – Do I Use a Carrot or a Stick? Part Two
November 8, 2018 By Leave a Comment
Choosing the carrot is a common choice for auto loan credit reporting. What happens when the stick or negative reinforcement is the answer? Sometimes, consumers respond to these “stick” tactics as payments become late or missed altogether. Communicating About Interest Rates The initial stick is the realization that interest rates […]
Auto Loans Credit Reporting – Do I Use a Carrot or a Stick? Part One
November 6, 2018 By Leave a Comment
Extending credit to an individual for the purchase of a vehicle can be a risky venture. Small-business owners verify and examine the person’s credit history with as much attention as possible. At the end of the day, the business must make a decision on either taking the customer on or […]