Understanding How to Acquire Bad Credit Car Finance
Are you being bugged by a bad credit history? Do you feel hopeless about getting a loan from anywhere due to this? Are your dreams never going to come true? Have faith. There just may be some light at the end of the tunnel.
Ray of Hope for Bad Creditors
Today, many Australian financial organizations with a solid history and reputation are prepared to provide a second chance to individuals who have been blacklisted due to irregularities in their credit file. A lot of these companies also provide No Deposit Import Car Finance options as well as assistance in Importing Cars to Australia.
Thinking of getting your dream car, but bogged down by a minor credit issue in your history? Bad Credit Car Loans Australia can be accessible to you provided you play your cards right. Given your position with bad credit, most money lenders or financial institutions of repute will draw a line when it comes to people who are less likely to repay the loan. There are several scenarios where a financial institution can refuse to give you a loan.
Bad Credit History
In case you have run into trouble with other financial institutions where you have failed to make good on your payments, you will be on the ugly side of the credit books. This is usually the case when you fail to repay your credit card purchases, defaulted on loan instalments, or even not paid your mobile phone bills. This is the information that money lenders have access to, so that they have something by which to identify a potentially bad customer. To get an idea of how your credit rating stands, you can request for a copy through the respective online portal.
Low Income
You may be rejected a loan if your income doesn’t match up with what is generally accepted to be the minimum required cost of living. When your income is low, there is a high probability that you will be considered incapable of managing your living expenses along with the repayment of your loan.
Not an Australian Resident?
If you are not an Australian resident, you are a high risk candidate for a loan as far as money lenders are concerned. Financial agencies have had bad experiences with visitors to Australia who have every opportunity to simply leave the country with their debts unpaid. If you’re not an Australian resident, there is a high probability that you will be required to put in a part of the funding for the purchase, so that you carry a certain level of risk along with the lending party.
Young and Restless
Young borrowers are also considered to be high risk for money lenders. Most of the time, such borrowers will need the support of their parents to stand in as guarantor.
So, how can you actually gain access to finance from reputed finance organizations when you have a bad credit history?
Show Your Honesty
Though it does sound kind of obvious, it’s important to be honest about the statements you make while filling out the application. Lenders can easily track down your credit history. So, if there is something that has put you in the wrong books, be open about it. Disclose the details yourself instead of letting the lenders to catch you. When you fail to provide adequate disclosure, you will be immediately red flagged, and you will find it difficult to get your loan approved.
Bank Records
Bank records of an applicant are an important point of reference for lenders to approve a loan. This is something that will be reviewed with great intensity. Your bank records are a clear indication of how you manage your lifestyle and how you adapt and manage funds to put you in a situation where you can actually make some savings. Even the smallest amount of savings reflects that you are capable of making way for surplus income, which would facilitate a successful repayment of the loan.
Other factors that will also be taken into purview when reviewing a bad credit car loan application include credit card or previous loan history. Irregular payments and defaulting in instalments can be a setback for you.
If you can project yourself to be upfront and transparent about your financial history in your application, you make it easier for the lender to process the application and put you at a higher probability to access the loan.