When lenders adjudicate credit, they are looking to answer the question of if they will be repaid on the funds advanced. When they see that someone is struggling with their current obligations it causes concern. The first step is to catch up on current financial obligations or if that is not possible, to consider bankruptcy or consumer proposal. Once that is done, it becomes a much easier process. Thinking of credit as stepping-stones may be the best analogy.
Taking a loan on a security such as a car is one of the best ways to start. As car loan payments are made, your credit profile improves and opens more options for you. As this happens, it gives you the ability to trade in the vehicle into another one at a reduced rate. It also gives you the ability to be approved for other forms of credit like credit cards and lines of credit. Rebuilding credit is a very easy process but takes time. It involves dealing with your past obligations, acquiring new credit and proving the ability to meet the financial obligations agreed to.
Every credit profile is different. Every lender has different lending parameters and practices. An approval representative needs to understand both your credit situation and which lender will look most favorably upon it. Without this know how, you may still be approved but at a higher interest rate. Worse yet, you may not be approved at all as the representative does not have the skill set to argue properly on your behalf. Because there is no training or certification requirement for someone to become an approval representative, you need to be careful on who you choose.
Make sure you trust them and what they say makes sense to you. Most importantly, make sure they have the experience to properly represent you and your credit worthiness.
