The Truth About Credit Responsibility
Making mistakes in life isn’t enjoyable, but it can create opportunities to learn life-long lessons. Some of us have the privilege of learning from parents, loved ones, or schools. Other times we may just learn general life lessons from the mistakes of others. However, when it comes to financial responsibility and stability, not everyone has a complete understanding.
This was emphasized in a recent study by the New York Post which interviewed 2,000 Americans about finances and credit responsibility. According to their research, over 71 percent of those studied are unaware of the various ramifications associated with a bad credit score.
Unfortunately, many Americans simply aren’t taught how to be financially responsible, which can have dramatic impacts on their credit. In these cases, people are forced to learn from their own mistakes and start the path toward credit recovery. According to OppLoans, this problem is more widespread than we might think:
- Two in three families lack an emergency fund
- 78% of adults live paycheck to paycheck
- Three in five adults don’t keep a budget
- Four in five youths failed a financial literacy quiz
- 27 states scored a C, D, or F for high school financial literacy
- 60% of adults had credit card debt in the past year
A lot of potential customers have dealt with gaps in their credit responsibility knowledge. So, by only offering financing options for recreation products to prime customers, dealers lose out on a larger audience.
Looking at Credit History
Many recreation dealers make the mistake of ignoring the portion of the public with poor customer credit. But lenders like Medallion Bank understand the bigger picture when it comes to subprime recreation lending.
With over 20 years of experience in this niche, our team looks at the credit history of each customer to find patterns of behavior, instead of only looking at a credit score. By looking at this history, we can see where these customers may have made mistakes in the past. But we can also see how they’ve worked to correct their mistakes and improve their performance since that time.
Because so many people struggle to understand financial responsibility, they are forced to learn the hard way through life experiences. As a lender, we can recognize when your subprime recreation customers are on the path toward reliable credit recovery. Making recreation vehicle purchases may just be another step in their credit repair journey.
About Medallion Bank
Dealerships that don’t offer subprime financing options are limiting their revenue potential. When dealers partner with Medallion Bank, they can sell more products to more people without assuming any additional risk. If you are interested in offering subprime consumer financing to your customers, learn more about signing up as a new dealer with us here.