What is the negative (bad) credit history?
It is the special notes about credits in case of the situation when the borrower dragged out with the credit payment or he gave the wrong information to the bank or even he was brought to trial because of the non – payment of the arrears. In addition the credit history would be bad if the borrower was called to the criminal responsibility or to the management responsibility and also if he had the arrears of the public utilities and the alimony.
Remember that the negative credit loans are the one of the main reasons of the refusal to give the credit. If you want to know about your credit loans it will be necessary to ask about the information about your credit history. Once a year this procedure is free for everybody. If you get the negative information about your credit loans, first of all check your payments and get to know if you have the arrears. If you have them, check the reasons of their presence. Is this your fault or just mistake? For the correction of the credit histories’ data just make a claim to the bank or you can have the problems with the next credit getting.
What about the banks which don’t check the credit loans?
The credit history is negative because of your arrears. Let’s investigate your possibility of the new credit getting. Usually all the big banks conclude a treaty with the one of the office of the credit histories (of course with the borrower’s agreement). If the borrower doesn’t agree to the full checking of his credit loans, it will be the reason of some suspicions and the following refusal to give the credit.
It will be easier for the borrowers with the bad credit histories to get the credit in the small regional banks. Usually these banks don’t have the furcate branch net, they economy with the advertisement so every client is worth their weight in gold. Also there are some credit organizations which attract the “negative” borrowers’ attention with the interesting suggestions about the getting of the express – credits. But these express – credits have absolutely unprofitable conditions for the borrowers for example too high rate and the confined term of the crediting.
The variants of crediting for the borrowers with the bad credit loans.
Of course not all the variants of crediting are available for the persons with the bad credit history. For example there is not any chance to get the mortgage credit. And it is easy to explain. Nobody will want to risk of the quite big amount of money and communicate with the “negative” borrower. There will be the same situation with the bad credit auto loan financing.
It is easier to get the express – credit for the borrowers with the bad credit history. The high costs of money and quite small amounts of money let these banks not attract the attention to the borrowers’ credit history. And also if these borrowers get the credit and cancel it in time they increase their chances to get the credit with the good conditions in the future.
The credits auto loans.
You need the car but you don’t have enough money. So you decided to get the auto loan. Of course it is the optimal modern decision that can help to win every side of this polygon – the customer, the bank, the auto salon and the broker as the middleman. If you don’t have the specific finance education it will be very difficult for you to grasp all the services and bank’s suggestions. So it will be better if you ask the special person for help.
You have to take into account all the geopolitical factors for example the crisis. For example it will be more difficult to get the credit in 2012. The banks don’t want to risk that’s why they become more exacting to the borrowers. Nevertheless the auto market always grows and it is the steady process. In this market the crossovers are leaders.
The bad credit auto loans are not getting often. Usually it depends on a lot of different factors. Some of them depend on the borrower, another part depends on the bank’s credit policy. Today the credit history is the kind of borrower’s visiting card. But everybody understands that the majority of the bad credit auto loans appeared at the crisis time, when people lost their jobs and any other acquisition of income sources. These situations were the reasons of arrears, fines and problems with bad credit auto loans refinance.
The fast bad credit auto finance depends on the fact can the borrower confirm his steady financial situation. Can he be that client who is needed to the bank? If the borrower know about his negative credit history but he still wants to get the auto credit, he will have to prepare a lot of documents about his present financial situation, for example about his salary, the possibility of the additional profits (for example the flat’s lease or the job under the treaty).
Another way to prevail the bank to get the credit is the possible payment of the bigger amount of money as an initial instalment. It can help not only to rise in bad credit auto loan lenders’ estimation but also to examine a question about crediting with more advantageous conditions.
To decide the question about the financing bad credit auto loans with more confidence, the borrower had better to ask for the credit broker to help. His experience and knowledge can help the borrower not only to determine the most advantageous credits program but also to choose the bank which can give the positive answer with the more possibility. Moreover the broker helps to prepare all the documents in the more attractive looks for the bank and he accompanies his borrower’s application for the credit getting in the process of the bank’s decision.
What about the initial instalment? The total sum of the finance a car with bad credit depends on the bigger amount of money as an initial instalment. This is the simple principle: if the borrower gives much money as an initial instalment the cost of money will be lower and so the total sum of the auto credit will be lower too.
Today there are a great number of variants of auto credit that are suggested by the banks to the clients. That’s why it can be too difficult to choose the one variant. Of course if the borrower has the negative credit history he will have less variants but it is not the reason to despond at all. If he is the decent person he will get the auto credit with the bad credit history.
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