Finance Questions

Archive for December, 2005

Question: CAN I BUY A CAR FOR MY SISTER ON FINANCE AND MAKE HER THE REGISTERED OWNER AND KEEPER?

SHE IS PAYING THE DIRECT DEBITS EVERY MONTH FROM MY ACCOUNT

Answer: Yes, there's no problem. We have several cars, two of which are on finance with my wife, I'm the registered keeper on all our vehicles. Just tell the dealer when you buy it who you want it registered to.

Funny TV commercial. Canadian Direct Insurance-WHY

Question: How does a Finance Company tell if a previous loan has been paid out?

My partner and I are going for a car loan (it will be a secured loan with security over the car). The finance person asked what payments and loans we have each month, I told them everything accurately but forgot a small personal loan which we have. When checking my your credit rating can they tell that we still have this loan. I have obtained a copy of my credit report but it doesn't say anything about previous loans whether they have been finalised or not, can a Finance Company see this information? will it go against us?does a Finance Company see the same as what i see on my credit report or do they see more?

Answer: I worked in Banking And Finance for 15 years and yes they can tell if you have a paid out loan & they can tell if you have other loans currently open. However, they can only tell this by pulling your credit report and the financial institution you have the loan with must be reporting your statistics to the credit bureau.

In this day and time I know of very few financial institutions that do not report to a credit bureau. The credit report you get as a consumer is not the same exact report a financial institution gets on you. The financial instittution will usually see more info. It should be close, but the credit bureau may not list out all your old closed accounts on reports requested by the customer since most people are only concerned about any open ones.

Chances are that forgetting your small loan will have little to no affect on your credit application. Most people forget something on their application, it is normal. The only way it would is if the loan amount still open drastically changes your monthly debt load and if it is severly past due now or has been in the past. From the sound of your question neither example applies to you so you should be ok.

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