Things To Beware Of When Making A Finance Application

Wednesday, 27. January 2010

Cleaning up your credit file has never been more important. Less money is available to lend which means that you really must make sure that you have no errors on your file and anything that can be corrected is corrected before you apply for finance. Even using a bad broker, who makes multiple applications to several finance companies, using your single finance application, can cause you to have your credit application declined by every lender as they see multiple searches suddenly appearing on your credit file. A couple of years ago this would have caused you to drop into sub-prime finance and pay an outrageous rate of 19.9% APR through the likes of Yeas Car Credit. But with less money to lend, the sub prime lenders are cashing in on the inability of more borrowers to qualify for prime rates, illustrated by an email I received this morning, proudly offering ‘guaranteed’ finance at the rate of 44.9% APR. Can you believe that, an APR of 44.9% from a company called Fund My Vehicle? Unfortunately applying for credit is turning into a lottery with lenders more inclined to look for reasons not to fund rather than reasons to provide the finance and once one declines the chances are that all others will until you find yourself desperately floundering in the sub prime pool. So check your credit file and use only brokers you can trust. By Graham Hill