If you dread having your car loan application rejected because of your bad credit, you should know that having a bad credit is not that uncommon. While it’s not the end of the world to have a bad credit, still, it can complicate things for you quite a bit, be it the case you need a loan, such as car finance. Ideally, you’d have time to get your bad credit sorted out, but what if you don’t have that luxury? In that case, you need some tips on how to secure a bad credit car finance deal in 2016.
When applying for a car loan, your credit history will be thoroughly investigated. Your credit history has to indicate that you are a reliable borrower, who is most likely to repay the loan. Factors which carry a lot of weight in obtaining a car loan are: your income, your assets, your bill payment record, whether you’re paying a mortgage, or you’re living in a rented place.
If you work for yourself, the banks and lenders look at you as if you’re a bigger risk. You might make a good income and enjoy the freedom of a self-employed or entrepreneur lifestyle. That comes with a drawback. Many lenders and banks will reject your car finance application just because you don’t have a regular, fixed income. But there are options out there for freelancers, contractors, self-employed business owners, full-time investors and entrepreneurs like you.
There’s not much worse than going into a broker or lender and finding out you’ve been rejected for a car loan. If you have bad credit and are fretting about finding car finance, you may scour the internet for a way around a credit check. At last – you find it! No Credit Check Car Loans. If you believe they’re a ticket to a car loan, you’re in for a bumpy ride.
If you’ve never applied for a car loan before, the lender or broker will always conduct a credit check. They use automated tools to view your credit history and assess whether they will lend money to you. Sometimes you’ll also have to bring supporting documents like payslips, residential history or bank statements. That seems like a lot of information. So why do they perform the extra check?