Unless you have defaulted on a loan without making any attempt to reprieve or fix your situation you should be able to access a bad credit car loan, below are several points to consider when applying:
Your current situation
When one of our lenders reviews a potential new client the primary question always revolves around “who really is this client”? Making up well-intentioned but fanciful stories of who we are does nothing to help our case when applying for credit. Technology today allows for access to large amounts of information and particularly when cross matched with your past living locations. Bottom line is to always come clean on your current situation, the lender will be more accepting of the application with a “warts and all” approach than finding increasing discrepancies during an assessment. The truth may hurt a little but is short lived once an bad credit loan has been approved
What state is your credit file In?
Are you aware of the state your credit file is in? Is one of the first questions a lender will ask when reviewing the suitability of a loan for a client. If you are unaware then we are there to help. There are several ways and companies that can provide yourself and lending institutions of your current credit file and it makes sense to have this information before submitting a formal application. Some of our clients are nervous about having credit checks performed on them as this can have consequences for future credit applications this needs to be discussed early as there may be options to work around this situation. If your credit file has issues for example unpaid telco bills or change of address and bills weren’t received then many of these and others problems can be addressed before going to application. Bankruptcy can look to exclude some people from getting a loan although there are circumstances where this can be mitigated and still allow for finance to be approved.
Your ability to pay the loan
This is where a financier or lender will look at your ability to repay a loan and where do you work. With many factors to consider in Australia relating to working status ie full time, part time, sub-contractor, casual, permanent part time and self-employed. It is obvious that a thorough understanding of where and how income is derived and length of employment is crucial to a successful loan application. Again be forthright with your broker helps to create a clearer picture in the lender mind as to the ability to pay a loan over a number of years and the likelihood that it will not create any hardships. Gaps in employment and being unemployed do not necessarily preclude you from getting a bad credit car loan but can make it more difficult.
How have your current loans been conducted?
Lenders will look to analyse your current statements to perceive trends in your repayment of current loans. Whether credit cards, personal loans or other equipment/rental finance if late repayments, non-repayment and loans in arrears (overdue) are showing then there will be more questions. Keep all of your statements even if it feels good to throw them out as it will be the primary source of loan evaluation a lender will undertake. There are steps to take if conduct hasn’t been too rosy and these include having a number of statement, 3 months or more showing good conduct. Check your statements to see where payments are going in or out of as sometimes clients inadvertently forget about a repayment coming out of their bank accounts, and will make a lender ask more questions. Credit cards are often assessed by the maximum limit on a card statement therefore if a very high limit is not being used this should be lowered to better reflect the current debt situation. And while on the matter of credit cards please ensure that all balances are on or under the set limit, overlimit balances can be a concern to some lenders.
Where are you living?
With large numbers of Australians working in mining and teleworking it can sometimes be difficult to show regular living locations for the purpose of getting a car loan. Lenders will be concerned with a large number of living addresses and when coupled with the highly mobile nature of the asset (vehicle) then obviously they would want to know you’re a good bet based on how long you have lived in a particular location. Although we can all be faced with having to re-locate or move for a job then it makes sense to consider this when making an application. There are often times when clients have stayed in the same location for several years only to move and realize they need a new vehicle urgently so keep this in mind.
The above touches on a few points which Intellichoice brokers consider when providing finance solutions for clients and no two circumstances are the same when applying for bad credit car loans. We are happy to discuss your situation today and source the loans you need.
