Are you struggling to get a car loan approval due to you having a less than perfect Credit History?
Don’t despair, the team at Ask 4 Finance offer a wide panel of flexible lenders that are willing to consider those who have a bad credit history.
When it comes to submitting an application for a bad credit car loan, there are a few things that a prospective lender will look at when considering your application.
Here are a few things that you can do in order to improve your chances of having your car loan application approved.
Loans and Credit Card History
As part of your current new car loan application, the conduct of any of your current loans and credit cards in your name will be closely scrutinised. An example of where this can work in your favour is that if your current or previous loan repayment history shows that you could pay more than the minimum monthly repayment, it can indicate to any prospective lenders that you can manage your living expenses and have the financial capacity to make additional payments to any loans borrowed.
Reviewing Bank Statements
As part of your bad credit car loan application, lenders will need to review your current finances. This means they want to see what money is coming into your bank account and what you are spending your hard-earned money on. The easiest way for them to do this is with your permission to access your bank statement details. With today’s advances in modern technology there is now a simple process that we employ that only takes you a few short minutes to be able to retrieve your bank statement details. Gone are the days where you need to head down to your bank and request paper copies of your last 3 or 6 months’ worth of bank statements. At Ask 4 Finance we want to make applying for a car loan as easy as possible for you.
Your bank statements play a vital role in demonstrating your ability to live within your means and this can also prove to a prospective lender that you do have the capability to set aside savings regularly. Being able to show a lender signs of savings and being able to manage your finances are a positive reflection on your ability to meet any future financial commitments that you may decide to enter into. The flip side to this is that the same lenders will also be looking for adverse banking transactions such as overdrawn accounts and dishonoured direct debits which are indicators that you are unable to live within your means. The finance industry is a highly-regulated sector and the lenders are bound by regulation to not lend to prospective applicants that are displaying signs of hardship or not being able to keep up with their current commitments prior to lending them money. This also means that they must consider what effect any new debt would have on your ability to financially survive if you were approved for a new car loan and needed to make these repayments on top of your current commitments.
Do you know what your current Credit Score is? If you don’t know, don’t be alarmed. Up until recently there was not a good understanding about how a credit score can help or hinder your chances of being approved for a car loan. Before you submit your application for a loan of any kind, be sure to request a copy of your credit file from a reputable credit reporting agency such as Veda or if you like we can arrange this on your behalf. Once you have a copy of your Credit File we can also help you review your credit file to ensure there are no errors or unresolved issues that need actioning prior to applying for a car loan. Taking the time to let us work through this step with you can be the make it or break it for your application if it is not handled properly, so take the time to really consider this offer of help from us. The good news for you is that our offer to help is Obligation Free! If you are not happy with the loan approval outcome that we achieve for you there is no obligation for you to proceed or pay us a fee.
Our experience tells us that lenders do not like surprises when it comes to considering new applicants for a bad credit loan, or any loan for that matter. Honesty is always the best policy, so you being able to open up and tell us the good and the bad stories (if there are any) will help us get a better, faster result for you. Any discrepancies that are uncovered by the lender or any misrepresentation of the information you put forward to us throughout the application process could see your car loan declined with no options to revisit in the future with that lender. If we have the full story and can explain why you have the current credit record and rating that you do, we are in a better position to speak with the analyst that is reviewing your car loan and put a human touch to the situation. If you have had some previous bad experiences with banks, you might think that they don’t have a heart, but at the end of the day there is still a human at their end considering your application. Our strong relationships that we have with these people and lenders can help us which in turn can help you.
Obviously having stable employment and being able to provide evidence of having a steady income is essential to the success of your car loan application. This also relates to any income that you may receive via government benefits or child support etc.
A prospective lender will look for a reliable source of income to ensure that you have the capacity to repay any loan that you are approved for. Whether you’re casual, part-time or full-time employed, having a stable employment history will play a key role to your application review being performed by the lender.
For those applicants that are employed on a casual basis, being employed by the same employer for more than 12 months will give the lenders some peace of mind and also show that you have a steady income hitting your bank account each pay period. In most cases, part-time and full-time employed applicants will need to have completed their probationary period as a minimum in order to prove to lenders that your job and therefore your income are both in good shape.
Do You Have Someone Experienced in Your Corner?
Our network of Brokers have helped hundreds of customers that were trying to get a new car loan but were getting rejected by the banks and other Brokers. We don’t work for the banks, we work hard for you to get the best possible car loan at the best possible rate and repayment. Ask 4 Finance is one of Australia’s leading personalised broker networks with a huge panel of lenders that are wanting more business. We can also offer you flexibility when it comes to car loan terms, interest rates and repayment frequency.
Through the necessity of revisiting your poor credit history to be able to apply for a car loan, it is easy to be overwhelmed and think the situation is hopeless. By taking the steps to start working with one of our experienced car loan consultants, you are putting yourself in great hands with your own personal lending specialist to help you through the process. We are here to help you every step of the way and are happy to answer any questions that you may think of.
So, Here’s Our Pitch
Ask 4 Finance is one of the largest writers of car loan finance in Australia today. We have specialists that deeply understand bad credit car finance, plus the various insurance and warranty options that you can take advantage of. We have access to over 20+ lenders and can also help you find the right car throughout our trusted network of Dealerships and Wholesalers.
With Ask 4 Finance you get access to your very own experienced Finance Broker from the start. Your personal Finance Broker is available to you 24/7. You get their direct email address and mobile number, which makes it easy for you to stay in contact with them if and when you have questions.