How Bad Is Your Credit?

Generally, there are four factors to be considered in assessing a person’s credit for an auto loan or lease:
Credit bureau report which includes bankruptcies and proposals
Your credit bureau will give a comprehensive summation of all your credit activities: auto loans, credit cards, lines, and loans, even credit inquiries. It will also present data on your loan registrations, judgments, and collections. This will be the basis in determining your creditworthiness.
Bankruptcies and proposals are reported to the credit bureau seven years after discharge (in Canada). When these credits and bankruptcies are dealt with accordingly, it would be affirmative since it would be reflected as your credit-handling capacity.
You can request a copy of it through a reliable reporting agency for a fee.
Credit score
There are several credit scoring methods, the most common of which is the Fico score model. The score is derived primarily from your credit history and will determine your credit worthiness.
This will include your past credit records like the number and timing of credit inquiries, timeliness of payments, financial agreements made, and whether balances are above approved levels. Do bear in mind that the better the credit, the higher the score.
Debt service ratio
This involves the ratio of your monthly credit obligations and monthly income. These credit obligations consist credit card payables, mortgage or rent payments, and loan payments.
Job and residence stability
The longer you stayed in your company, the better your chances of getting a car loan. The most important is the main source of income. The secondary or part time employment doesn’t hold much weight compared to the main source. The longer one stayed in a residence the more likely you will be considered for a loan since you are less of a flight risk.
Availability of Cosigners/Co-applicants
Having any of your loved ones or any relative who could be the secondary driver of the car can be a
co-applicant or cosigner. They can surely give plus points for attaining that loan.

Source: http://www.ezeecredit.com