It is possible to get car finance if you have a bad credit history.
These 10 tips will help:
1) GET EXPERT HELP
Many bad credit car loan applications fail because they don’t address the criteria that finance companies need to know about you in order to approve your application. Kyle Rhys of www.badcreditcarloan.com.au says financiers are process-driven organizations. “Finance companies look for reasons to lend you the money,” he says. “All you need to do is address their key criteria appropriately, so that they can ensure the risk of lending you the funds is acceptable. Unfortunately, many people torpedo their applications, not because they’re unacceptable loan clients, but because their applications are poorly completed. Getting an expert to help you makes all the difference.”
2) APPROACH REPUTABLE LENDERS
Thankfully, many reputable Australian lenders have specialist bad credit loan divisions that deal with such applications on a daily basis. If you have a bad credit history, you are not alone.
3) COMPILE YOUR RECORDS
You will need to demonstrate your recent financial history – and that means doing some legwork. You’ll need bank records, credit card statements, payslips and loan statements. Without the evidence, on paper, you can’t demonstrate to a lender that you are a good risk.
4) BE HONEST
Don’t embellish the truth about your past financial dealings – everything you say in your application will be investigated and cross-referenced against available records. Complete honesty breeds confidence in your application.
5) NO OMISSIONS
Don’t omit any facts from your application, no matter how poorly you think they might reflect on you. Leaving key facts out will reflect far more poorly on you than putting them into a complete, honest and up front application.
6) DON’T OVER-DRAW
Your bank records will need to demonstrate sound financial management. Don’t overdraw any of your accounts – and make sure sufficient funds remain in you account at all times to service regular automatic payments.
7) PAY YOUR CREDIT CARD ON TIME
Your credit card statements must demonstrate your ability to make payments on or before the due date – so don’t let any of the payments run late, and – preferably – pay more than the minimum monthly payment.
8) SAVE A LITTLE
If you can demonstrate the ability to save each week – even if only a small amount – you’ll be showing a potential lender that you have excess income capacity that could be used to service the debt you’re applying for.
9) CHECK YOUR HISTORY
Go to www.veda.com.au for information on your credit file. Accessing your file is easy and cheap – and it allows you to contact those who have made entries in it, should you believe an error has been made.
10) SOLID EMPLOYMENT
Lenders are far more inclined to approve loans to clients with a solid recent employment history: more than 12 months in the case of casual employees and at the very least beyond the probationary period in the case of part-time and full-time employees.