If you answered “yes” to both questions then you are probably looking for ways to escape your predicament.
Here’s the good news, there are things you can do to get your loan application approved under your current financial situation. You just have to follow a few simple tips, and before you know it, you’ll have that car loan – even with a bad credit.
Find a regular source of income
First things first. Secure an employment or any regular source of income. Try to maintain a good employment history and avoid hopping from one company to another.
Financial lenders will look at your income sources. Having a steady employment will exhibit your capability to make consistent repayments for a loan.
Maintain a good bank and credit card records
Another important thing to do before you apply for a car loan with a bad credit is to manage your current finances well. That includes having a clean savings account and credit card history.
Avoid overdrawing and late payments. Show that you are now capable of saving consistently as well as paying your dues on time.
Do these to demonstrate that you can make loan repayments on time and lenders may give you a second chance.
Resolve any issues in your credit file
The first thing that lending companies will look at when you apply for a car loan is your credit file. One of the simple tips to get a car loan even with a bad credit is to make the effort to clean up some of the mess reflected on it.
Immediately pay for any issues that can be settled by payment and resolve any disputes you had with creditors. If needed, get help from a solicitor or ombudsman to arrive at a final resolution.
Never apply for many loans
This is a big no-no in the eyes of lenders when applying for a car loan, especially when you have bad credit. Each time you apply for a loan, credit inquiries will be done to your credit file. These inquiries can be seen by car loan companies and they don’t leave a very good impression.
They may think that you are reckless in your financial decisions and decline your car loan application. Especially avoid payday lenders, which are enticing because of fast small loan approval but are unsecured and have high interest rates.
Be honest with your credit history
Another simple step to get a car loan even with bad credit is to be honest with your past financial mistakes.
When you have finally applied for a car loan, don’t bother lying about your bad credit. The broker will know about it anyway.
Instead, be truthful about your past financial issues and give reasonable explanations why they happened. Try to convince the lenders that your bad credit history can be avoided and will not happen with your present finances.
There are plenty of ways to maintain a good credit history, just follow it once you reach a certain level of positive credit.
Contact Aussie Car Loans
Aussie Car Loans has been helping clients with the different financial options that we have, regardless of their credit history.