Finding Car Finance for Poor Credit Scores

Don't let a poor credit rating deter you from buying a car

car loan 1 Stratton FinanceOften those that need car finance the most, sometimes have less than perfect credit rating. Financiers can overlook the person behind the rating and that can complicate things even more.

However, there are things that you can do to help you get that all important car loan.

Here’s some tips that could help:

Be upfront about your credit history

Contact different finance providers and explain your situation to them. At this time honesty and explanation about your situation is your best friend.

Gauge their response, if they seem positive about progressing further, or not, then this might save you a whole lot of trouble when it comes to the crunch.

You never know, you might be able to have the assistance of the provider right through the whole car buying process.

Don’t apply for car loans with multiple lenders. It might seem that the more applications you submit the better your chances, but this can work to further negatively impact your credit rating.

Be wary of the Finance type

There are a number of different types of car loans, ranging from personal loans, Commercial Hire Purchase, Chattel Mortgages, Leases etc.

Not all of these will be available nor suitable for everyone.

Try for a longer Finance loan

Yes, you might end up paying more, however the lower monthly repayment costs might just make the difference between getting finance and not.

A finance provider like Stratton Finance will be able provide you with an assessment for your car loans. The Car loan calculator from Stratton Finance will look at your current financial situation, including income and expenses, and decide exactly how much they feel you can comfortably repay.

Information is your best friend

Finance providers looking at potential borrowers who have less than perfect credit ratings are going to be even more thorough when it comes to checking out your financial situation and background.

Be sure to have documents like payslips, tax returns, bank statements and any other relevant financial documentation that can give the assessors the best picture of where you stand.

The more you are prepared and the more information you can give the provider the better.

What should business owners do?

A documentation and information strategy are especially important for potential car loans clients who are self-employed.

Be sure to provide recent invoices, business tax returns and copies of any contracts that the business holds with external clients.

Only borrow what you need

The irony is that you need to borrow money to improve your credit score, so, take small steps first.

You might want that brand-new sports car, but maybe a small car is a more achievable goal? Or, try to find a demonstrator model – these can be thousands of dollars less than a regular new car.

Do you really need those optional extras? Keep it simple and as low-priced as possible and this will help you get back in the credit game. Car loans by Stratton Finance at https://www.strattonfinance.com.au/ are tailored to your needs and budget.

Save a deposit first

A deposit will help you a long way towards getting a great car loans.

That means, save! Put some money away each week over a couple of months and before you know it you have some equity to bring straight into the equation.

Having a deposit (and savings record) helps show the lender that you can cover repayments.

Beware, if it’s too good to be true it just might be

We’ve all seen the signs promising ‘everyone approved’, but this could mean you’re signing up for extremely high interest rates and possibly large upfront commissions and fees.

This could possibly set you back again and further damage your credit rating.

Shop around and try and find a finance provider that wants to work with you to get the best possible outcome for both parties.

Get a guarantor

Having a close friend or family member act as guarantor may make you a more attractive prospect to lenders.

 

About Rob Fraser 911 Articles
Rob Fraser – General dogsbody & Director Rob is the founder of the business. He constantly mutters something about way too many red wines one evening being to blame. Often known for taking the 4WD in the driveway over the sports car, he has travelled pretty much everywhere in Australia and when he is bored goes for a drive. He first learned to drive on the farm in a left hand drive WW11 Jeep when he was 11, and was hooked on 4WDriving way back then. In addition to 4WD he is an avid motoring enthusiast and has maintained a strong interest in the industry ever since his teens. He has owned way too many cars in his time as well. Having previously lived at the top of corporate life he retired in 2000 and hasn’t put a suit and tie on since. Cars are his passion so why not have a business doing what you love he figures. He has towed either a caravan or camper trailer to most parts of Australia, has run guided tours for camper trailers’ and instructed drivers in off road towing.