Doubtfully, there is a person in the world who does not know or has not heard of the financial global crisis which hit us two years ago. Indisputably, it is the most serious one we have had for the last 20 years and all figures serve to corroborate that fact: rates of unemployment reaching 13%, 10% lower salaries, high interests of credits and low rates of interests for deposits! However, there is something else which is also indicative of the serious condition all countries’ economics are in. I am talking about the rate of bad credits!
I am going to give you a very simple example. As you know there are many people who would like to purchase a new car which is better or, why not, more fashionable than the previous one. But unfortunately, there are very few wealthy people who can afford to get a new and expensive car without getting a credit. And as we said, applying for a credit is a mission impossible as the banks hesitate to approve even people owing millions of dollars.
So, there is no wonder that the rate of bad car financing (and the bad credits in particular) is so high. Here are some figures which prove that fact indisputably: in 2006 the percentage of bad credits was three times less than it is in 2010. What does that fact say to you? Yes, I know that it is obvious- there is a huge amount of people who were terribly disappointed to learn that they had not been approved and were not allowed to get credit for a new car.
However, we said that being approved for a loan or credit by a bank is mission impossible, but there are actually some tricks which you could use in order to increase your chance of being approved.
There is no doubt that if you would like to have a better chance for getting car financing, you should know how your financial status is estimated. Most of the banks use the so called credit rating and if a person has more than 680 points, then he or she will definitely be given the car credit which is required. But the more significant part is the criteria which the banks take into consideration in order to estimate your financial status- those are your salary, other profits, expenses, properties which you owe, lack or availability of other credits and loans and some more. Now, when you know that important information, you can make some changes so as to make your credit rating higher. Once you manage to do that, there is no doubt that you will not be one of the millions of people with bad credits.