If your chances at a car loan are slim, chances are you have bad credit. You know this because lenders have rejected you in the past. In some cases, these rejections are a shock and leaving you wondering why it happened. Bill Tsouvalas from www.badcreditcarloans.com.au has put together the top 5 things you should consider when applying for a bad credit car loan.
Check your credit history
You should take this step before even looking at vehicles within your price range. A common complaint among people with bad credit is that their credit histories contain errors that unnecessarily lower their credit rating. Unfortunately, no one tells you when these errors occur yet it’s your responsibility to fix them. Correcting these errors may improve your standing.
Sift through the “too good to be true” deals from dealers
Many dealers will extend finance to prospective customers. Some of them will attract people with “zero percent finance” or “1% comparison rates.” These deals are often stacked in the dealer’s favour. 0% finance rarely means “nothing.” This kind of finance may cost you more in the end with longer terms, balloon payments and other hidden fees.
Figure out what product best suits you
Bad credit car loans rarely come in “one size fits all.” Bad credit car loans come in many forms and it’s up to you to figure out what is most important in your bad credit car loan. Do you need terms that are more flexible? Are you willing to trade that for a lower interest rate? Is a shorter loan term best? This is something you must consider.
Get quotes, but don’t apply
There is a temptation to apply for as many car loans as possible to increase your chance of approval. This negatively affects your credit file, especially if mainstream lenders reject you. Don’t submit your information to a lender until you’ve finished your homework. Tell them you do not want any credit checks done.
Deal with expert lenders
Seeking finance from one lender often means you only have access to one or few products. By dealing with a specialised bad credit car loan broker, you are given a range of options that suit your needs. The financial professionals at BadCreditCarLoans.com.au are available to find the best rates, fairest terms and most flexible options. The more experience and access to finance a broker has the better.