5 Tips On How To Get A Loan With Bad Credit
When applying for a car loan with bad credit, it is most important to understand which motor financiers will consider your application and what they will be looking for and being prepared for this can help you obtain a bad credit car loan approval.
Here are some tips to help you get a car loan with bad credit.
Tip 1 – Take Care Of Your Banking Conduct
As the bad credit motor financiers will be looking to review at least three months of your bank statements, it is important to make sure that you never overdraw on your account without an approved overdraft facility, and for any direct debits that are setup, sufficient funds are available each time they are due to be debited. This will prevent your bank account balance from being in a negative position and will assist with getting a bad credit car loan approval.
Tip 2 – Understand Your Credit File
You can obtain a free copy of your credit report from the My Credit File website. and it is wise to know what is displayed on this prior to applying for any loan. You will be able to see any personal details about yourself, such as addresses, employers or you being a party to any businesses. If these are incorrect, you should have them updated prior to applying for any car loan. Your credit file will also show you of any credit inquiries made, and any adverse information, which can be addressed prior to car loan application.
Tip 3 – Employment History
The longer you stay in your jobs, the better your application will present for any type of loan application. As your employment is your source of income, the more stable your employment appears, the more stable your income will appear, and this is required to repay any debt and would give the motor financier much more comfort if your employment is secure, which will increase your chances of a car loan approval.
Tip 4 – Legal Advice
Although this could be a small cost to you, having a professional legal firm look over your credit file may allow them to discover if anything that has been listed on your file is in error, or the correct procedures were not followed. They can advise whether any defaults may be able to removed off your credit file and this could increase your chances and even options for lenders to not only get you a car loan approval, but could possible get you a better car loan deal.
Tip 5 – Get Professional Assistance
Engaging in the services of a professional finance broker that specializes in bad credit car loans can increase your chances, as they can guide you through what is required and prevent you from applying when your application may not be ready. Not only that, they will place you with the best lender for your circumstances which could also save you money.
Kyle Rhys is an Australian automotive finance expert. His knowledge has been developed from over 15 years’ experience in the auto financing space.