How to get approved for a bad credit car loan in 2015?

Posted on Friday, February 27, 2015 - 10:17

Bad credit can be a weight on people’s shoulders when they try to find car finance. It doesn’t have to be. Using our tips, you can get approved for car finance even if you have credit issues. You might even save yourself a whole lot of money.

Ignore the “too good to be true offers”

First, don’t be lured into “zero percent” finance from dealerships. These kinds of “deals” always favour the “house.” They may not run a credit check, which leaves you in a worse financial position. If you have bad credit, going through a specialist bad credit lender or broker is always a much better choice.

Gather your income, residential and credit histories in one place

Before you appoint a consultation, get your recent payslips, bank statements (especially those showing you’re paying off other debts) residential and credit history together to give your broker or lender a complete picture of your situation. Having a stable income and residential history may show your lender you’re less of a risk than what your credit history shows. Your credit history might contain mistakes. Correcting these errors is your responsibility. The upside is that it helps your application.

Don’t apply too many times

Don’t feel tempted to “test the waters” and apply for many different car loans. If you’re declined, this shows up on your credit history and hinders your chances. You should definitely shop around for brokers and lenders.  However, state explicitly that you don’t want them to run any credit checks. Read our article on why my car loan application was denied.

Set a solid, manageable budget

Lenders and financiers are wary of lending too much money to someone with bad credit. If you’re in the market for a car, look for one that will comfortably fit your budget. You’ll have to take into account running costs, insurance and maintenance, so always factor that into the final number. It also helps if you have a deposit (but it isn’t necessary in some cases.) Find out top tips for buying a car at auction.

Don’t hold back

Afraid of hearing a big bad “no?” If lenders find you’re fudging the numbers for approval, it reflects very poorly on your applications. Just be up front with your lender – they’re here to help.

Get advice from a professional

Bad Credit Car Loans have an experienced team of financial professionals to assist people with bad credit car loans get the best deal possible with the most flexible terms. If you’re stuck and unsure of what to do, contact us for a free consultation. We believe in second chances at finance, and so should you!

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