Bad Credit? Here’s What You Can Do To Ensure You Get A Car Loan

//Bad Credit? Here’s What You Can Do To Ensure You Get A Car Loan

In a perfect world, none of us would have bad credit. In real life, unemployment and unexpected costs are a fact of life, especially when we least expect it. You might find yourself paying off credit cards with other credit cards, and dealing with more bills than you can handle, while still needing to make necessary investments such as getting a car. Many Australians assume that car ownership (and financing it) is off the table when they have bad credit. However, with a bit of planning and preparation, it actually can be achieved. Here are some helpful steps you can take:

  1. Get a steady income source

If you aren’t already employed, then you should aim to get a full-time job with a reputable company and strive to maintain this position for a solid period of time. This will indicate that you have a steady income and that you can make regular repayments to lenders

  1. Work off debt

It’s understandably challenging to eliminate debt instantly. What you can do is take steps to reflect that you’re making an effort to pay it off. Even if you can’t afford to make large payments, regularly contributing small sums (without delaying) will work in your advantage, as it shows a dedication towards eliminating your debt. If you have several smaller debts, it might even be helpful to secure a consolidated loan, which can result in lower monthly payments.

  1. Avoid incurring more debt

If possible, cancel any outstanding credit cards, store cards and bank overdrafts that you don’t owe any money on. You should also take care to avoid incurring new debt, which may give the indication to lenders that you have a habit of overspending, and might do so in future. If you must take out credit, do so with a licensed and authorised broker or financer.

  1. Know and maintain your credit records

Did you know that you’re entitled to a free credit report detailing your finances? It’s crucial you have a record of your own to ensure that you aren’t being negatively scored when you have paid-off debts that don’t reflect as such on the report, or are inaccurate in any way. Remember that this is what loan providers will check first when deciding on your application.

If you still have any questions about getting a new or used car finance, or need some more advice about overcoming bad debt, give us a call today.

2018-03-08T12:23:27+00:00 February 27th, 2018|Car Loan|0 Comments