When any financing group agrees to accept the terms of a bad credit auto loan, it honors the promise of the man or woman who has taken out that loan. Usually, the person who has obtained a bad credit auto loan must somehow promise not to “ignore” the debt incurred by the securing of a new loan. The nature of that promise is up to the organization that has chosen to offer the bad credit auto loan. .

Now, when a possible home owner seeks a mortgage, he or she needs to show the bank that any past debts have been or will be cleared. That is what one future home owner did in 1987. Working with a helpful loan provider, that future homeowner produced two to three written statements about his plans to pay-off any existing debts.

Based on those statements, that future homeowner got a mortgage and bought a home. Later, he used the same statements to purchase a car. Initially, the credit union and the rent-a-car agency that were selling the year-old cars did not want to sell a car to this man, this man with bad credit.

Then that bad credit holder produced the statements he had given to his loan provider. The financial institution and business then agreed to provide that new home owner with a car loan.

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