- Posted 21 Jun
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Sometimes, things just don’t go your way in life and you end up with a bad credit rating as a result. This doesn’t mean that you can’t gain access to a car loan, especially if you can show that you have made steps to improve your situation or can provide a suitable explanation for defaults on your credit file. In any case, Australian Car and Finance can help you find the best deal. You just need to be aware that you will more than likely receive a higher interest rate.
Here’s some more information to help you gain access to a car loan if you have bad credit:
- Bank statement review – the lenders will be looking to see if you are able to conduct your financial affairs appropriately. They will review your bank statements to see if you are meeting your obligations and if you have any other loans you are paying off. They will be looking at overdrawn amounts against your account to. Generally, they will be looking at a three month period.
- In Australia, when you apply for any type of loan, an enquiry is listed on your credit file, whether you are successful in receiving the loan or credit. Lenders are also looking out for any small loans that you may apply for. These are not looked favourably on by lenders as they are normally from ‘payday lenders’. Avoid applying for these if you are looking to purchase a car and apply for a car loan in the near future. Basically, the lender will take the view that if you can’t live within your means, how you will be able to afford a car loan repayment.
- Bankruptcy or Debt Agreements. If you are still undischarged from Bankruptcy or under the terms of a debt agreement, you will not be able to access any car loans until you have been discharged from both for at least 12 months. During the time you are undischarged from either of these is a good time to get your financial affairs in order and get yourself into a position where you can apply for a car loan.
If you are looking for a bad credit car loan, there are some options open to you. If you are not looking to own a vehicle, you could look at leasing options instead.
Australian Credit and Finance has access to over 13 lenders in this area, so we can work with you to find the right price and deal that best suits your needs.
Contact us today to discuss your bad credit car loan options and receive a quote, at absolutely no obligation.