vehiclesolutioncentre.com

1-888-441-2332 Contact us

A DIVISION OF ALLABOUTWEBSTRATEIGIES.COM INC.

Frequently Asked Questions - All FAQs

FAQs - All FAQs

At Vehicle Solution Centre we use our many years of proven ability to evaluate your credit profile, available inventory, income, as well as debt factors. Our process ensures that each application has the best possibility of approval prior to submission.

Your credit rating is an assessment of your ability to handle the financial burden of credit at a particular time. It is important to remember that your credit rating is dynamic. This means that it will change as your financial circumstances change.

While most financial institutions offer similar products and collect similar information during the approval process, credit granting policies will vary by product and from one credit grantor to the next.

Recognizing that everyone's financial situation is unique, here are some common reasons why applications are often declined:

1. History of missed or neglected payments

This will likely lead to a lower rating on your credit bureau and could be of particular impact if previous creditors were forced to write off a loss.

2. Inadequate proof of income

A T4 slip or a pay stub is generally required as minimum proof of income. Depending on the type of income you earn (for example, if you are self-employed or a contracted employee) and the type of loan you require, more information may be requested.

3. Lack of employment or income stability

Based on your employment history, it must appear reasonable that your income will continue into the future.

4. Insufficient income

Your total income must support your current liabilities and living expenses plus the additional credit you are applying for. If your income doesn't meet the requirement, you may be able to have your application co-signed by a relative or friend who does meet the criteria and who will agree to be liable for the debt if you fail to make the payments.

5. Lack of collateral

Depending on the type and size of the credit requested, you may be required to provide collateral of sufficient value to support the debt. For example, a personal mortgage or Home Equity Secured Line of Credit requires the security of a residential property.

6. Avoid using credit to pay off credit

Consolidating balances from several credit cards into a lower-rate loan may be a smart move to reduce your interest charges and lower your payments so that you can keep them current, as long as you don't continue to increase your debt load. But simply making payments on one credit card with funds drawn, for example, from another credit card does not necessarily improve your overall rating because it can be seen as an attempt to avoid paying off your debt. It's much better to focus on paying off the credit you have.

7. Ask for help

If you find yourself getting in over your head, Click here to go to our Credit Repair page.

 

Your credit history

Every time you apply for or receive credit, and every time you make or don't make a payment on time, you are building your credit history.

When you apply for credit, your financial institution has three ways to evaluate your credit history --

They review your past dealings with them;
They consider any new information you provide in your credit application;
They may contact a third party credit agency for a report on your overall credit history.

Credit agencies collect credit information from the companies that provide the credit to you. A strong credit record enhances your ability to get credit in the future. Records containing negative reports, such as overdue payments or nonpayments, could make it more difficult for you to borrow or get credit in the future.

Since your credit bureau report represents a summary of your activities with a variety of financial institutions and consumer companies, it is a good practice for you to request the details of your credit rating from the credit agencies periodically. This will help you to understand your rating and ensure that the information the credit agencies are using is correct.

To find out how to obtain a copy of your credit bureau report, you may contact the credit bureau agencies directly:

Equifax Canada 1-800-465-7166 consumer.relations@equifax.ca

Recognizing that everyone's financial situation is unique, here are some common reasons why applications are often declined:
1. History of missed or neglected payments
This will likely lead to a lower rating on your credit bureau and could be of particular impact if previous creditors were forced to write off a loss.
2. Inadequate proof of income
A T4 slip or a pay stub is generally required as minimum proof of income. Depending on the type of income you earn (for example, if you are self-employed or a contracted employee) and the type of loan you require, more information may be requested.
3. Lack of employment or income stability
Based on your employment history, it must appear reasonable that your income will continue into the future.
4. Insufficient income
Your total income must support your current liabilities and living expenses plus the additional credit you are applying for. If your income doesn't meet the requirement, you may be able to have your application co-signed by a relative or friend who does meet the criteria and who will agree to be liable for the debt if you fail to make the payments.
5. Lack of collateral
Depending on the type and size of the credit requested, you may be required to provide collateral of sufficient value to support the debt. For example, a personal mortgage or Home Equity Secured Line of Credit requires the security of a residential property.

Most people may not know it, but the insurance industry is colour-blind. It doesn't matter if your car is blue, red, silver, white, or black, your insurance rate for that make and model of car will be the same.

What colour is your car? See what the most popular car colours are.

Not necessarily. People often think a 2-door car is sportier and thus more expensive to insure but insurance companies rate cars based on the claims history of that vehicle—not how many doors it has. They look at things like the car's accident frequency, repair costs, theft frequency, vandalism and safety ratings for each make and model. When these factors are combined, a 4-door could cost more to insure than a 2-door model.

Parking tickets do not count against your insurance, but unpaid fines could affect your ability to renew your driver's licence or worse result in a licence suspension—which will affect your rate.

That depends. Your first minor speeding ticket (typically defined as being less than 50 km/h over the speed limit) may not affect your insurance rate; it will depend on your insurer. But, get two or three and you'll probably be paying more to be insured. A major speeding ticket (usually 50 km/h or more over the speed limit) and your rates go up for sure.

Advertisers

Newsletter Subscribe

captcha