I need to apply for a loan. Right now, I have a good job and don't have too much debt, but in the past I wasn't so careful about my finances. How likely do you think it will be for the bank to pull a credit report on me before they make a decision?
That is highly likely. In this mobile society, it is more and more difficult to make loans just based upon an evaluation of character, a handshake, and a smile. As the old saying goes, past behavior is often the best predictor of future behavior, so a lender will typically want to know how you've handled your financial obligations in the past. That doesn't necessarily mean, however, that your poor habits in the past will haunt you forever. If you can show the lender the point at which you changed your attitude and behavior and you've started to build a solid base for financial responsibility, the lender may be willing to give you a chance, depending upon how long ago the bad behavior was and how bad it truly was. If it was fairly recent and really bad, you'll still probably be able to find a lender -- but it may not be the one you want and the terms of the loan will be less favorable.
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That is highly likely. In this mobile society, it is more and more difficult to make loans just based upon an evaluation of character, a handshake, and a smile. As the old saying goes, past behavior is often the best predictor of future behavior, so a lender will typically want to know how you've handled your financial obligations in the past. That doesn't necessarily mean, however, that your poor habits in the past will haunt you forever. If you can show the lender the point at which you changed your attitude and behavior and you've started to build a solid base for financial responsibility, the lender may be willing to give you a chance, depending upon how long ago the bad behavior was and how bad it truly was. If it was fairly recent and really bad, you'll still probably be able to find a lender -- but it may not be the one you want and the terms of the loan will be less favorable.
