Gulf Coast Auto Credit has reported a record number of subprime auto loans were approved in May, 2011. These loans are not the anathema that was blamed for pulling out the underpinnings of our financial structure. These loans were made to people needing a second chance credit approval because of circumstances related to the recent financial meltdown.
Mario Radrigan, President of Gulf Coast Auto Credit, reported that ”It was an extraordinary month for Gulf Coast Auto Credit. We were able to finance people who were credit challenged, had bankruptcies, had no credit, or no cash down payment.” The need for these loans came about when usual lending channels tightened their lending policies. Gulf Coast Auto Credit is the largest subprime lender in Venice, Florida. The company provides auto loan services to customers with bad credit, no credit, bankruptcies, tax liens, charge offs and foreclosures.
Many may wonder if bad credit car loans make sense after the recent recession. Short term loans at higher interest rates can actually strengthen a bank’s portfolio. If no one serviced these loans, a large portion of the auto loans in the U.S. would never be made.