Kubota Insurance – What Credit Score Is Needed ?
Any type of Kubota credit, whether it be finance or leasing, will be offered to an individual or not depending upon whether the credit agency involved and in this case Kubota as well deem the individual to be a suitable credit risk or not.
The process involved in establishing this is quite a complex one, although the end result often makes it seem slightly over simplistic.
This means that anyone who applies for credit of any type with any institution is effectively checked by a credit agency, of which nationally there are normally two or three.
They will do a thorough background check on the individual and their financial commitments and obligations and produce a report that assesses the credit agencies view of their financial suitability for credit.
The credit agency initially undertakes what is known as a credit report on the individual.
This involves collating a large amount of information relating to the individual’s personal history and their credit history.
The information collected with regard to their personal and life history relates to information such as their name, date of birth, their current and previous addresses, their current and previous telephone numbers.
Also collected information relates to their Social Insurance Number or their Social Security number, their drivers license and their passport. Information will also be collected concerning their current employment and all previous employment and any financial information that may stem from that area.
The credit agency will also collect information on the individual’s credit history.
CREDIT SCORE / CREDIT REPORT
This relates to a scan of public records for things such as bankruptcy.
Their banking history also be analysed including their level of overdrafts and whether they were authorised or not, whether any bank accounts have been closed due to lack of funds or overdrawn checks.
Any current and previous loans and mortgages will also be checked, specifically with a view to see how much was lined on whether it was appropriate and whether there were or are any problems regarding repayment terms.
Lines of credit will also be analysed to see what type of credit has been granted and in which specific areas. Also all types of credit cards and any store cards also be looked at along the same terms as well as any telephone or Internet payment problems.
Specifically there will also be a focus on what are known as pay day loan applications, which anecdotally are known to have an adverse affect on an individual’s credit score.
Once the credit agency has assembled this information relating to an individual’s personal life and their credit history they use the information to evaluate the individual and work out what they deem to be a credit score.
This credit score is essentially a single number, although it may be a triple digit number, that is set as a value between a range of two other numbers or values.
As an example, an individual may have a credit score of 50, set between a range of 1 and 100. this would indicate that the individual has an average credit rating.
In practice credit agencies use a much greater range of values as this gives them a much greater specificity of where to put the individuals credit score and accurately reflect their credit rating.
Credit agencies work out a credit score specifically on the basis of the history of the individual.
This applies to their payment history on all credit loans mortgages has been taken out, they use of available credit, their length of credit histories and what types of credit they had used.
A credit agency will also take into account the number of enquiries or credit applications that have been made and when they have been made.
After this process has been gone through, the credit agency will come up with a specific number that indicates their view of the creditworthiness of the individual.
This number will then be used by Kubota to decide whether or not to offer credit by way of finance and leasing to an individual, and if so on what terms and conditions.
Kubota may decide to offer credit to someone with a poor credit history but by increasing the size of the down payment and the interest rate charged to reflect a greater risk. Alternatively they may decide to deny credit, and suggest the individual seeks help elsewhere.
Many dealerships will also offer advice for people with poor or bad credit histories and some will have links to specific financial institutions who may be able to help.
A good dealer will go the extra mile to help an individual get credit when Kubota itself not able to offer credit because they view the individual to be a bad risk, but still want to sell them a tractor.