qualifying for credit

Discussion in 'Credit Talk' started by angie, Jul 31, 2000.

  1. angie

    angie Guest

    can some one tell me why with a 2 year old bankruptcy i can lease a 20,000 brand new car but i cant finance a 2000 sofa at seamans
  2. Keith

    Keith Guest

    Perhaps because cars are considered a secured loan and furniture isn't?
  3. Renae

    Renae Guest

    Could it be that it appears that because of the bankrupcy and the car loan of that amount-they feel that you may be over extending yourself and are more of a risk?
  4. CardReport

    CardReport Guest

    I would suspect that credit contracts for expensive furniture *would* specify that the merchandise secured the loan, and could thus be repossessed.

    In fact, I've heard that Sears considers *everything* that is bought with its store card to be security, and will demand it all back (even worn clothing) if the cardholder declares bankruptcy.

    Perhaps the car dealer was just more desperate to make a sale than the furniture store. There may be more room for pricing flexibility in charging the consumer more for the extra risk on the car loan, as compared to the funiture. If it was the same customer, then the funiture store may have figured that s/he was potentially over-extended with the car obligation, and didn't want to get involved. Also, the depreciation on the sofa could be even worse than with a car, and it may not be insured against damage, as a car would be.

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