6 Tips To Get A Loan With Bad Credit
Top benefits of a bad credit car loan with CarLoans.com.au
- Fast approvals
- Low rates and flexible terms
- Independent Advice
- Wide range of lenders and products
- Fixed repayments make budgeting easy
Bad credit happens from time to time, to a great many people. But with the right preparation and appropriate applications it is possible to secure finance on a new vehicle.
Shaun McGowan from CarLoans.com.au says many loan applications from those with a bad credit history simply fail – not because of the underlying bad credit history, but because of intrinsic defects in the nature of the application.
“Modern, reputable financiers recognize that most people get back on their feet following a bad credit incident,” he says. “Securing finance in this situation means doing the right leg work, and preparing your application in an honest, acceptable way.”
Here’s how to maximize your chances of having your loan approved.
The way in which your credit application is prepared, and even the timing of its submission, has a significant impact on your chances of success. McGowan: “We hear from a lot of people who have become quite frustrated after sending poor quality applications to many different lenders – often sending the same application multiple times to the same lender. They form the view that this time they might ‘get lucky’. Unfortunately, it doesn’t work like that. Lenders have strict protocols and criteria that must be met, and unless they are, applications are always rejected. The sad fact is that many of these potential customers are eligible for finance – it’s their applications, not them, which are deficient.”
2. CURRENT PERSONAL FINANCES
It’s essential that you can demonstrate that your current financial situation is in order. “Your recent financial history will be scrutinized,” says McGowan. “You need to be able to demonstrate – via bank accounts and payslips – that you have regular, consistent income, and that you are meeting your current financial obligations. It’s very important that you don’t overdraw your bank account, or miss any regular payments.”
3. EMPLOYMENT HISTORY
A consistent employment history – preferably with your current employer for a significant period – demonstrates to a potential lender that you are stable, and capable of holding down your job, and therefore likely to receive a regular income for the term of any potential loan.
4. RESIDENTIAL STATUS
Lenders look for stability – especially in assessing potential customers with a bad credit history. Evidence of residing at the same address for a significant period of time – in the form of rates notices and utility bills, etc. – will be viewed as an asset.
5. CURRENT LOANS & CREDIT CARD DEBT
If you have current loan or credit card repayment obligations, it’s vital to demonstrate that you are meeting those obligations. A solid repayment history with no missed payments, and, in the case of credit card debt, a history of making payments well above the minimum required will definitely work in your favour.
6. RIGHT ADVICE
Advice from a finance professional is essential. “Talk to someone who specializes in bad credit car finance,” says McGowan. “We can give you a road map to a successful loan application – one which a lender will look at and use to view your application favourably.
Speak to us today, call 1300 889 669 or click here to enquire about getting a bad credit car loan.