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What To Do When You Have Bad Credit History And You Want To Buy A Car in Australia?

January 26, 2015

Are you planning to buy your dream new set of wheels but facing the problem of bad credit history, then these tips are for you? Taking a car loan is the most viable option when you need to finance your car and you can find enough dealers in the Australian market that are willing to help you cut out the best deal, however, with a bad credit, this can become challenging. So, to make the process simple, here are some tips for you.

    • Be Prepared –

You can avail a bad credit car loan even if you have poor credit score, but you just need to do your homework well. Be prepared as you need to show some additional documentation in case of a bad credit rating. You need to show some relevant documents that proves you have taken actions to improvise your financial condition. You need to give a valid explanation of all the possible defaults in your credit record.

    • Be Ready with Bank Statements –

Have your last three months bank statements to show it to your lender and make sure that in those three months you have not missed any of the payments that will prove that now you are in a stable financial position. And in case you have taken other loans, then lenders will look at status and details of other loans as well.

    • Avoid Taking Too Many Smaller Loans –

When you are planning to take a car, avoid taking too many small loans like payday loans at the same time. Especially when you take pay day loans, this gives a clear impression to lender that you are not managing your finances well and you are not capable of paying your bills on time, so make sure if you had any pay day loans, you have paid it off before you think of securing car loan.

    • Ensure Bankruptcy has been dismissed –

If you are in state of bankruptcy, then you will not be able to secure any car loans, it is critical to dissolve any debt or bankruptcy for at least 12 months before you opt for a car loan. It is important to have a stable financial condition to secure a car loan.

These tips can prove useful when your credit history is compromised and help you secure a bad credit car loan.

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