CAR LOAN?... WHAT'S YOUR CREDIT STATUS?
Credit Status
Credit History is one of the 6 'C' of Loan Assessment Proceedures as detailed by Nigel Brookson, and used by most of the Lenders in Australia Today.
Read more about the 6 'C' here
The types of credit, fall into several categories, and are detailed below.
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Good Credit is where there are NO DEFAULTS listed on the applicants 'Credit File', and the person can get a reference from a lender saying that the credit they provided was repayed on time. Read more...
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Past Paid Defaults, show up on your 'Credit File', as defaults listed and paid. The date of the original default will be listed as will the date it was finally paid in FULL. if you agree to pay a lesser amount to finalise the account, this will also show up, noting that the amount was settled, and everyone will know the Full amount was not paid, which will not help you in future applications. Read more...
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Current Unpaid Defaults will appear as Defaults of your 'Credit File' that have not been paid.
What you are saying to a prospective Lender is then that you want them to lend you their money, even though you have shown you do not pay lenders back
This will make all 'mainstream' applications unsuccessful. Read more...
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X Bankrupt means that you have been; or declared yourself Bankrupt, and have been released from bankruptsy after a period of time, often 3 years.
Some lenders will consider lending to X Bankrupts, and the mainstream lenders like finance companies, will sometimes if there has been some sort of 'Good Credit' since you were released from bankruptsy. Read more...
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You are not allowed to apply for finance under the law while you are Bankrupt. Read more...
Read about the different Loan Types, Loans available for your Employment Status, and Loans available depending on your Credit Status.
Due to the recent Global Financial Credit Crisis, many Lenders have become more 'conservative' in their lending guidelines, meaning that they have tightened up on lending to people with poor credit histories, especially people who have multiple defaults with lending institutions, like Banks...
Guidelines around Employment Status, and continuity of employment, has also been tightened, and most 'mainstream' Lenders will not lend their money while you are on a 'probationary' period... » See Guidlines here
Take time to read, and become better informed before you apply, and when you do make a personal loan application, make sure that you complete all the questions truthfully, and in as much detail as possible... » Read About the 6 'C' of Credit Assessment here
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