A bad credit file: causes, consequences and solutions come and discover at Autostudio72 in Mirabel.

A bad credit file: causes, consequences and solutions

It’s possible that after a couple of rough years on the money front, you go to your financial institution to ask for a loan (let’s say for a car) and get “no” as an answer. When you weren’t paying attention, your credit score plummeted to the point that banks show you the door after a quick look at your file. How is it possible? Yes, you made a few late payments, but you’ve always honored your debts at the end of the day, so why can’t you now access to (conventional) credit and how to get out of this deadlock?

A bad credit report: the causes

Too many people make the mistake of thinking that paying back some of their debts or starting to reimburse them at a reasonable rhythm immediately improves their credit file. It’s a very naïve vision caused by a lack of critical informations fairly common among the general population. Your credit file is drafted by personal information agents, better known as credit bureaus, based on inputs provided by several businesses and institutions, and therein lies the rub. Your credit cards or lines and your personal loans are only the tip of the iceberg of the elements taken into account in the calculation of a credit score. It means that if you prioritized the reimbursement of one or many of these financial tools during a bad pass but neglected others businesses like a rental company, the credit service of a furniture and appliance store or your phone services’ provider, for example, the result of this decision will show on your credit report. The majority of businesses that give access to financing options can also write informations in your credit report (especially in the case of repeated payment defaults) that will be used in the determination of your score by the aforementioned credit bureaus. You’re not completely protected from a bad surprise when you’ll get your head above the water and that the credit accounts that you have with your bank will start to decrease gradually. All the aspects of your financial life are taken into account in the calculation of your credit score, sometimes for as long as 6 or 7 years, even the ones you’d like to make disappear or that you have forgotten.

A file with huge implications

Unfortunately for those who didn’t (or couldn’t) manage their finances with diligence, a bad credit score is a lot easier to receive than to correct. More than your bank, all the businesses offering financing options (the same that can report informations used by credit bureaus) can access your credit report. A bad score will not only close you the door to conventional financing with your bank, but also to a lot of products and services that require monthly payments. That goes from the purchase of a new phone or a piece of furniture to… car loans.

The 2nd and 3rd credit chance: a concrete solution to a real problem

The example in the introduction is not exactly pulled out of thin air. A job loss (and thus revenue losses) is a frequent and very logical cause of timely financial problems. You maybe had to sell your car to not completely drown and you just found now a new job that requires you to have a vehicle. This perfectly rational explanation doesn’t fit in banks’ solvency calculation criteria. You won’t have any other choice but to turn to homemade car financing. On solving your immediate transportation need, this approach could also be the first step toward the resolution of your credit issues in general: car dealers that offer homemade financing, like AutoStudio 72, are on the list of businesses allowed to add informations on your credit report. Dealing with one of them will give you  a quick access to a car loan and  and occasion to prove your payment capacity, thus increasing your chance to improve your credit score as soon as possible. You fear you’ll be turned away there, too? That would be highly surprising. Car dealers that offer homemade financing know their target audience: the hardest cases are generally accepted and treated accordingly, we also offer Bailiff Repossesions for sale.

When something seems too good to be true, the wisest thing to do would be to stay cautious. However, the answer to the question “Is it possible to improve my credit score by financing my next car purchase with a pre-owned vehicle dealership like AutoStudio 72?”, the answer is a big fat “Yes!”.

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