By Kyle Rhys
Bad credit car loans may be a good option for those that would not normally qualify for a standard car loan due to their credit history. There are a few lenders that specialise in bad credit car loans and they are there to provide a second chance to those that they feel deserve this.
So how do you go about obtaining a bad credit car loan?
Here are some tips for you to prepare yourself for what you may require.
Most bad credit car loan financiers will review your bank statements to see that you are coping with your current income and expenses. Make sure that if you have any regular direct debits that the funds are in your account when these are due and payable.
Direct debit dishonour fees may show the financier that you are struggling. The bad credit car loan financier will also see if you have any other type of finance, so it is important to note everything on your application, as they can get this from your bank statements.
If you have just started a new job, now might not be the best time to apply for any kind of loan. Your employment is where your income will come from to pay your car loan repayments, so the bad credit car loan financier will want to make sure this is secure.
The fewer jobs you have in a three year period, the more stable your employment will be deemed with your car loan application and this will look more favourably for your loan application outcome.
If you have had any past loans with any other creditor and the accounts have been paid on the due date all the time, and if you have access to obtaining these loan statements, this will vastly improve your chances of obtaining a bad credit car loan approval by presenting these statements with your application.
You should know and understand every detail of your credit file prior to applying for a bad credit car loan. The more information you have about your bad credit, the more prepared you will appear and the less work the financier will have to do, and this could assist in a more positive outcome of your application. Obtaining a copy of your credit file is free and you can access this as often as you like, so it is recommended to do this regularly, so if any new data is placed on your file, it can be actioned in a timely manner, as the quicker bad credit is resolved, the better your application will always look.
It could be a good option to engage in the services of a professional finance broker who deals with bad credit car loans regularly. They will know the lending criteria of each lender and assist in increasing your chances by preparing your application in the best possible light. They may even have some options that can help you obtain a better deal depending on your bad credit.
Kyle Rhys is a car finance industry expert who currently works at www.badcreditcarloan.com.au, a website which is dedicated to helping people with a bad credit history get a car loan.
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