You want a loan to buy a car but your credit is not credible! Is it possible to get that loan? Here we offer some positive tips on how to get over that loan hurdle.
So, you want to be financed into a vehicle In Brisbane – here’s our best advice on how to buy that car, despite a poor credit-rating.
Your credit score plays a big part in whether or not you can buy a car through Auto Finance. A history of poor credit is not the end of the world but there are some hurdles to securing that desired finance. Here we offer some useful tips on how to overcome your credit problem and buy that vehicle.
First, check your credit score – and work on it
It’s far easier to buy a car without a history of bad credit. But if you have been or are in the red that is easier said than done.
So, the first tip: check your credit score and see what is causing you to be a credit risk.
You can take this action to improve your score:
Pay off loans or credit cards before the due date;
Avoid pay-day lenders; and
Apply for loans for products or services that are essential, not things you must have.
Know those interest rates
A poor credit rating may affect the interest rate offered on finance for your car.
Although lenders may now be more forgiving when assessing a loan to a borrower’s circumstances a particularly bad credit-score will see you paying a higher interest rate because of possible risk.
Study the car-finance market. This will provide you first with a standard interest rate. You can then use that rate to explore the market, to shop around to find a better interest rate and negotiate the best deal. Don’t simply accept the first interest rate that pops up!
Increase your deposit
A larger deposit means lower repayments. Lenders will then be more willing to provide you with a loan.
Most businesses offering auto finance Brisbane will consider not only your credit score but also your deposit – and your income.
You will improve your chance of securing that loan If you can confirm you have savings and enough income to pay for the car – in fact, show those key items savings and income and your chances of getting a loan are much higher, despite a poor credit-rating.
Try to get a pre-approved loan
Some lenders offer a pre-approved service for vehicle loans, a service that tells you how much you can spend. It provides peace of mind for the dealer and improves your ability to buy that vehicle.
However, don’t get carried away when requesting a pre-approved loan. Be disciplined about your budget and how much you can realistically afford.
Our tip is:
Skip extras that may be offered for a car. Be thrifty.
No bells and whistles: You are navigating a credit problem so show your lender you are disinterested in expensive add-ons to your purchase.
Financing of a car in Brisbane is possible for someone with a credit problem but as explained some important things must be considered before you apply. Do your homework and you can set yourself up for an affordable loan.
If you’ve got your eye on a new car and want to discuss your car-financing options then call us today.