Have a question? 1300 301 051 8:30am - 5:00pm AEST
Get Quote

The Best Way to Apply for a Car Loan with Bad Credit

Nobody likes to get a mark on their credit file, especially when the blemish was the result of a simple error or once-off oversite. But unfortunately, in the world of traditional finance, a blot on your credit file can ruin your chances to obtain the funds you need for those all-important purchases, like a car.

But thankfully, there is a way to apply for a personal car loan even if you have bad credit. There’s nothing tricky about the process, you just need to ensure you follow the right steps. But wait, it gets better – there are only 2 steps!

Step 1. Get the skeletons out of the closet

When you go for car finance, don’t try to hide anything from the lender. Remember, they’re allowing you to borrow money to get something you want, so you need to be upfront. But you might not even remember you have skeletons in your closet, so you should get a copy of your credit file.

You can access your credit file from major credit agencies like Equifax. Or you can have a broker access yours for you on your behalf, at no cost, in preparation for the next step.

Step 2. Use a broker

Traditional banks and lenders are all about following procedures. So much so, they often forget about the human element behind everything.

What does that mean? It means you could have a tiny speck on your credit file, and instead of delving into why it’s there, they’ll just reject your application because their policy says ‘no specks allowed’ and there was no upfront explanation.

That’s where a professional finance broker comes in. Their entire purpose is to advocate for you to get the financing you need. They’ll take the time to get to know you and your situation, as well as understand why your credit file has blemishes.

From there, they’ll be able to scan through their panel of lenders to find the one that will be the best fit for you. What’s more, professional brokers will oftentimes have solid working relationships with their lenders. So once you pick the best option to proceed with, if it’s necessary, they can call or email their ‘inside’ contact to have deeper chat about your application.

That’s a huge advantage to you because it can break the shallow assessment model, and allow the lender to understand that you can afford the repayments. So they’ll be able to make their decision based on reality, and not just a report generated by a credit agency.

Do you have bad credit?

Whether you already know your credit history is blemished, or if you aren’t entirely sure, don’t just go in and apply for finance without taking the two steps above first.

Remember, brokers are on your side. They’ll not only assist with the application process, but they’ll try to get the best interest rate for you – since someone with imperfect credit can pay higher rates by default.

Do you have any lingering questions that weren’t covered above? Would you like to check your credit file? The team at Auto Car Loans are readily available to answer any further questions you may have. Feel free to give us a call on 1300 301 051 or reach out at any time at [email protected] to learn more or apply to our car loan online form.

Let’s have a chat, just give us a call on 1300 301 051 or reach out via our contact page.

Tags:

Fill in $ amount, Get Instant Quote, Drive your car!