Popular Auto’s Starting Connection Program aims to help establish credit
Looking to help consumers establish a credit history, and under the motto, “Now you can have what you dreamed of,” Popular Auto announced the availability of the “Starting Connection Program.”
This program makes it easier for people who do not have credit experience, or it is limited, to buy their first car through a qualified co-signer, while establishing a history.
One of the main benefits of Starting Connection is that the applicable interest rate will be based on the co-signer’s credit score. This offers the applicant a better interest rate when purchasing their car, the bank said.
“There are people who, that while they are of legal age, have a job and a fixed income, perhaps they cannot finance a car because they don’t have enough credit experience in their profile,” said Antolín Velasco, president of Popular Auto.
“There are even situations in which another qualified person signs the vehicle financing contract in their name, the client pays it responsibly and in the end, that financial history is for the one who signed off, and not the one who paid it,” he said.
“This program seeks precisely to recognize the credit responsibility of the person who pays for the car and for them to start a credit history in their name,” Velasco added.
The Consumer Financial Protection Bureau estimates that about 26 million people within the United States financial system are “credit invisible” and another 19 million consumers lack enough to have a credit score.
The importance of having a credit history often goes beyond the purchase. It influences the decisions and the cost of credit, as in many other areas such as buying insurance, renting a house, purchasing other goods or services, and can even be used by a future employer —with prior authorization from the prospective candidate — to inquire about their financial responsibility.
“Today more than ever, we recognize that it’s not always easy to establish a credit history. This program, provided that the terms and conditions are met, offers to facilitate that process,” Velasco said.