5 Ways to get an Approval for a Car Loan with Bad Credit

22 December 2015

If you have a bad credit score, securing approval for your car loan can be done without the long approval process.

Understand Bad Credit Car Loans

This type of loan is designed to give you a second chance to obtain finance to purchase a car, when you have a bad credit history. Generally, most banks in Australia will not offer you credit when you have a very low credit rating due to your inability to pay back previous loans. This is because they consider you to be a high risk applicant. But you can obtain finance for your vehicle. However, this loan will be issued to you at a higher interest rate and the car will serve as a form of collateral. 

Be Honest About Your Credit History

It is very important to be absolute sincere about every statement you write in your loan application. Remember that your financiers will take time to scrutinize and investigate your application. If you withhold any information about your previous credit records, it could send a negative signal to your lender and your application may not be granted. Therefore have all your information before you fill out any car loan application.

 

Improve Your Banking Records

You’re immediate past banking records are a vital aspect of your loan application.  It is important to show that you will be able to save a certain amount regularly and live within your present financial means. If you plan to obtain a loan in the next three to six months, you should start a weekly savings habit today.  This will assure your lender that you have some surplus income with which you will pay back your loan.

 

Have a Stable Source of Income

A stable and regular source of income is critical when you are applying for a car loan. Preferably, you should be employed But some Rent 2 own companies can help you out even if you are unemployed or on a pension

 

Apply through a Rent 2 own outlet

Speak to an expert who specializes in providing car loans to people with bad credit. Most Rent 2 own companies do not use banks or finance companies, but hold the debt themselves.

This will help you get an approval as nearly all other finance institutions will either deny your application or charge you up to 48% interest per year. Where a Rent 2 own company will have a slightly higher market value for the car but not charge any interest!

Taking a car loan through an expert financier can help you to improve your credit score by a fairly large percentage when compared to those who refuse to take loans because of bad credit.

Conclusion

You can quicken the process of obtaining a bad credit car loan by applying the information provided here. Be absolutely honest, get a stable income source, and start saving regularly

 Remember that when you pay back your loan on time, you will improve your credit rating and have access to credit through a main stream credit provider in future.

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