Improve your credit rating and get your dream car!
Need a new car now but have experienced financial difficulties in the past? Loss of job, illness or poor decisions in your past can all lead to a credit file that makes it difficult to attain a car loan.
02 Nov 2015
This should not and does not mean you don’t deserve a second chance to get your credit rating back on track and buy the car that you need – whether it be for work, transporting the kids to football practice or just getting to and from the shops each day.
If this situation sounds familiar fear not, there is good news. Many reputable lenders, including Liberty Financial, an awarding winning loan provider are prepared to give you a second chance! To do this it’s important to be realistic about the kind of car you want, how much you can borrow to buy it and how you need to go about getting the finance to make it possible.
First off, we all have that shiny new car that we have dreamed about but before we get carried away it’s important to first work out how much that we afford to borrow. Setting yourself a budget and calculating how much you can realistically afford each month will give you a good indication of what kind of vehicle you can afford and assist in applying for the right kind of loan for you.
Before you go shopping, seek a pre-approval. Lenders are in a good position to determine your capacity to afford loan repayments and it’s important to understand if and what kind of loan you’re eligible for before spending the time shopping for a vehicle or placing any deposits on a new car.
The key to getting a car loan at all times, but particularly with a poor credit history - is honesty. It’s vital to be completely honest in every statement you make in your application. If you have a bad credit history, you can rest assured that lenders will investigate your loan application closely. Assessing a bad credit application is essential to both ensuring that the lender is confident to approve your loan but to ensure that the loan your take out is the right fit for you. You cannot provide too much correct information but you can certainly provide too little!
If you’re unsure, you can always access your credit file in advance, which is a great way to see exactly where you stand. The more information you can provide upfront, the less chance you will have to shop yourself around to dozens of lenders, leaving you frustrated and potentially harming your chances of ultimately getting the loan. Gathering and disclosing information about your credit history, banking records, employment, debts and living arrangements is a great start to ensuring the process moves as quickly and comfortably as possible.
The more research you do yourself and provide to the lender, the more you can you learn about what each lender can offer you and whether a bad credit car loan is right for you. The good news is that there are plenty of car loan options out there for you and all you need to do is be honest with yourself about what you want and with the lender with your application and there is a great chance that you could in your new car on the way down the coast and to an improved credit history in no time!