Credit History

Finaning auto loan without credit is possible A bad credit signifies that the person has a poor credit history due to various reasons such as skipping the monthly loan redeemable amount (monthly installments that one pays to \”pay off\” the loan), untimely loan repayment habits, exceeding the credit limit, and even declaring bankruptcy. Basically, all the finance activities associated with the loan are recorded by the lenders when they provide the loan facility. When the person starts making timely payments to the lender, the fact is included in the credit history, and this creates a \”good\” impression of the borrower, which wants to improve the credit ratings. However, when the opposite happens i.e. the person fails to fulfill the terms and conditions mentioned in the loan agreement, it creates a negative or a \”bad\” impression which lowers the credit score.

This gives rise to \”bad credit\” ratings. On the other hand, some individuals like college graduates and business persons using cash while carrying out their financial transactions do need have any credit record or history, since they might have never availed any credit or loan facilities in the past. Such a condition is interpreted as a \”no credit\” status. In both the cases, financers and money calendar hesitate while providing the loan, since they are our about the repayment capacity of the borrower. So both the credit conditions create problem for the loan applicant when he or she applies for the credit facility. The money thus lenders provide loans having stringent terms and conditions associated with the repayment activity to these kinds of borrowers. Typically financers provide \”no credit car loans\” to individuals having a \”no credit\” type of credit status, and \”bad credit car loans\” to those who do not have a credit history. Bad credit loans-the main problem associated with a bad credit status can prevent the applicant from getting the much required car loan.

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