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25 August 2016

Accessing Bad Credit Car Loans with Unpaid Defaults

If you have ever been rejected by car financiers because of your poor credit history, there could be more than meets the eye. Unpaid defaults can significantly undermine your credit history without your knowledge. If you have defaulted on some payment before especially with large corporate businesses, your reputation may have been tarnished. Unpaid defaults can be either small utility bills or massive car loan repayments. The size does not matter, but the impact is, such defaults can block your way when trying to access car loans with bad credit.

How Common Are Unpaid Defaults Incidences

Unpaid defaults are more common than you think. Not paying gas, phone, internet, or electricity bills can easily put an unpaid default mark on your credit profile. Thanks to some understanding lenders, you can still get a car loan even when you have been implicated for unpaid default. This is because bad credit car loan institutions know how utility and big service providers can at times be over-eager when it comes to handling defaulters.

In some cases, some financiers will ask that you first settle the defaults before approaching them for lending. On the other hand, some will take time to analyze the frequency and severity of your defaults. If the defaults are not as many and evenly spread out, the lenders will not have any issue because your risk level will not be as high.

Other Types of Unpaid Defaults to Watch Out For

Aside from unpaid utility and phone bills which are considered to be on the lower end of the default spectrum, there are some serious defaults you should consider because they can completely barricade your path into getting a car loan. Some of these defaults include:

•              Outstanding payments to other financiers

•              Defaults to banks

•              Pending court judgments or writs

 

If you have previously defaulted on a loan such as a home loan, car loan, personal loan, or even business loan, many lenders will tend to be extra careful when dealing with you. They may even ask you to produce evidence if you are disputing what is on your credit history. Where the defaults are minor or negligible, a few lenders may decide to waive their conventional restrictions and give you the car loan.

Court Writs and Judgments

If you have incomplete or pending court judgments relating to debts or some other financial matters, car loan lenders may still extend financing to you. Court judgments and writs which have been handed down and acted upon are considered insubstantial in nature and some financiers may overlook them. In some cases, you will be asked for supporting evidence and transcripts so that the lender can fully assess your position.

What You Can Do to Improve Your Chances

If you are in a good position to repay your unpaid default, you should not hesitate in doing so immediately. You can also make an arrangement to have the defaults cleared over a period of time. Never let your current bills fall due as this can enhance your chances of qualifying for car loans with bad credit because the lender may overlook your past in favour of your current repayment status. Rent 2 Own Cars are not concerned about your past only your future.

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