5 Tips To Getting A Car Loan With Bad Credit
By John Cadogan
Sound money management and a solid employment history are the keys to getting a bad credit car loan approved. Reputable lenders all have key approval criteria for applications involving poor credit, but industry experts say it’s often low quality applications, rather than low quality applicants themselves, which often result in rejections.
Kyle Rhys from www.badcreditcarloan.com.au says demonstrating you meet key lending criteria is vital. “It’s a bit of a cycle,” he says. “Some applicants often submit dozens of fundamentally flawed applications in the hope that one will finally get approved. Invariably, it doesn’t. In this situation, more applications won’t help; a single better application will.
Here are Kyle Rhys’s five tips on submitting a high quality bad credit car loan application:
Answer all application questions completely and honestly. Don’t leave anything out.
Kyle Rhys: “You need to understand that all claims you make in your application will be checked against your financial records. Discrepancies will raise red flags, and this will erode any trust the prospective lender is developing in you. A far better option is complete and open up-front disclosure.”
Don’t allow your bank balance to slide into the red. Sound money management skills are vital to a successful application.
Kyle Rhys: “Lenders look for applicants who can live by spending less than they earn. They need to see evidence. So, don’t let your bank balance go below zero. Make sure you have funds there to cover any automatic deductions, and if possible show you can save a small amount each week – that’s evidence you have sufficient income to service additional debt.”
Pay your loan and credit card repayments on time.
Kyle Rhys: “Lenders need to know you take your repayment obligations seriously. Therefore, make the payments on time – and in the case of credit cards, try to pay more than the minimum monthly payment.”
Employment stability is important.
Kyle Rhys: “Stability is something lenders take very seriously. Long periods of continuous employment are better than many jobs with gaps in between. Lenders like to know you’ll likely be employed and earning an income for the term of the loan.”
Your living arrangements matter.
Kyle Rhys: “Lenders look for stability, once again, and the simple fact is that you appear to be less stable if you move around a lot. The longer you stay in the one place, the more stable your application.”