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How To Get Car Finance with Bad Credit

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Have you got kids that you need to drive to school? Do you have a job that requires some travel? Or maybe you’re just sick of catching public transport? Having a car gives us the freedom to get to where we need to go. As our lives get increasingly busier, it’s more important than ever to have a vehicle.

We believe that everyone deserves the chance to own a reliable and quality car, no matter your circumstances. But just because you can’t get a personal loan for a car, doesn’t mean that you’re not eligible for other car financing options – because there is a difference.

The difference between a car loan and car finance

A personal car loan allows you to borrow a certain amount that’s transferred to you for you to spend as you wish. You’ll then pay this off with interest and principle.

Car finance is where we’ll finance the vehicle under our name while you make repayments (with comprehensive insurance and rego included). At the end of the term, you may have the option to transfer the car into your name, upgrade to a newer model or move on to something else.

Learn more about car loans and car finance here.

How we are different

We constantly accept those with bad credit and defaults, under 25’s, seniors and those working multiple jobs without a regular payslip. These are options that are rarely available with a personal loan.

How to Increase Your Chances of Car Finance with Bad Credit

If you’ve got bad credit and are concerned you won’t be approved, don’t stress, there are still a few things that you can do to prepare for your application for car financing.

Review Your Finances

Take a look at all your bank and financial statements. Your credit history is the first thing a lender will look at to see if you’re suitable for finance. So make sure that you’ve collected statements from all your banks and income including all bank accounts, loans, credit cards and pay slips.

Pro Tip: Make sure that all your bills and repayments are up to date. This demonstrates that you’re reliable and on top of your current finances.

Be Honest With Your Financial Lender

Don’t change or remove anything from your financial statements. It’s hard to hide or fudge your financial position, and if lenders find intentional errors, you’ll ruin your chances of approval. When talking to your lender, make sure that you take all of your statements with you and be honest and completely transparent about your current situation.

Pay Off Your Other Debts

Before you apply for finance, if you have the time, pay off a credit card or a personal debt completely. By having fewer repayments on your plate, you’ll appear as less of a risk to the lender.

Pro Tip: Buy something small using financing that you know that you can pay back and do this before you apply for car financing. This will show your lender that you’re reliable, at the same time boosting your credit score.

Consider Your Needs

We all want the newest, biggest and fastest car. But this is something that most of us won’t be able to have. Look for cars in a modest price range that will help you get to where you need to go without any over-the-top bells and whistles.

Talk to our car finance specialists today so that we can learn about your financial situation and give you a second chance at bad credit car finance.

Whether your needs are to get to work every day or drop the kids at school safely, we’re here to help you.

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