Get a car loan with bad credit

Getting a car loan is now available like never before. There are many videos and stories on the Web about how bank consultants approve loans not only for people experiencing temporary financial difficulties, but also for initially insolvent people - the unemployed, large families, and even for people without a fixed place of residence - simply speaking, the homeless .

Of course, such facts confirm that banks hire people who are not very well versed in the law, and such cases are quite rare.

Usually, the bank checks the credit history of borrowers very scrupulously, we have repeatedly written on the pages of Vodi.su that the bank may need from half an hour to several days to consider the application, and the client's credit history plays a very important role in the decision-making process.

It is no secret that most Russians today have credit obligations to banks. Someone manages to repay loans on time and without delay, someone may experience difficulties - a person lost his job, his salary was cut, other expenses were added due to the birth of a child or the illness of one of the family members, and so on. Each of us has a dossier - a credit history, which displays:

• our average income level;
• all loan agreements that we have entered into before;
• all facts of violation of the terms of the contract.

Based on these data, all borrowers for banks are divided into good and bad. Credit history is stored in the credit bureau for 15 years and throughout this period affects the possibility of obtaining new loans. But one thing needs to be clear:

• consumer and auto loans are very beneficial for banks, so managers always try to figure out the reasons why the client could not pay his obligations on time.

Indeed, if a person had a difficult financial situation 5 years ago, today the situation can change radically - a person has moved to another, highly paid job, dealt with his old overdue loans - that is, based on the documents provided by him, the bank decides that such a client is completely will be able to pay a new loan for a certain amount.

What do experts advise?

If you decide to buy a car on credit, but in the past you have already had problems with banks, you should not panic - there are several ways to get a car loan with a bad credit history.

First, loan officers will look at the nature and causes of these violations:

• delays in payments for several days and even weeks (a one-time delay of 29 days is considered not the most serious violation, frequent delays and delays from 29 to 120 days are much more severe - the bank can transfer the case for collection);
• statute of limitations - if there were regular long-term delays several years ago, then the bank can turn a blind eye to this;
• if the client can confirm that the violations arose due to objective reasons (loss of work, illness, birth of a child), then most likely the loan will be approved.

Secondly, a positive factor is the presence of closed loans issued after violations. For example, you took out a loan and experienced problems with its repayment, and after closing it, you issued new loans, which you paid off on time, thereby confirming your solvency.

Thirdly, collateral for the loan and the presence of guarantors will be a very big plus. In the case of a car loan, the car itself will be collateral, we already wrote on our Vodi.su portal that just because the car is a pledge, banks are so willing to issue a car loan.

Guarantors are those people who trust a person, and in this case, trust is necessary, because in case of problems with payments, the entire weight of the financial burden falls on them.

Please also note that customers with a bad history of loans are provided at high interest rates. In addition, there are certain restrictions on the loan amount - if you take a maximum of 200-500 thousand, then the loan will most likely be approved, but if your appetites start from a million more, then the bank will check all the data on your solvency for a very long time.

It should be noted that banks are very sensitive to the economic situation in the country.

In the run-up to looming crises, more and more clients are getting rejected, even if their history is untainted. Even getting a credit card or an express loan causes a lot of difficulties.

Usually, express loans and credit cards are perceived as an alternative source of financing - in good times, banks distribute them to everyone indiscriminately, without particularly delving into the financial situation of a person.

The only downside is the high interest rates.

In addition to credit history, the bank evaluates many other factors: age, length of service, income of family members, family composition. Therefore, experts advise, and we support them with all our might - try to fix your credit history, even if you make an initial payment of 20-50 percent of the cost of the car - this will already be an additional plus for you.

Never take out a loan if you are not confident in your abilities.

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