A Cyber Station for Daily Finance

LOAN

5 Tips On How To Get A Loan With Bad Credit

5 Tips On How To Get A Loan With Bad Credit

Getting a car loan even if you have been declined elsewhere and if you have bad credit is still a possibility. You just need to understand which motor financiers can assist and what requirements they have.

Here are some tips that may help you get a car loan with bad credit.

Tip 1 – Clean Up Your Credit File

You can obtain a copy of your credit report for free, which will show you of any issues on your credit file that should be addressed. If there are any outstanding defaults, you should contact the creditor and learn why it is there. If you are able to have any adverse history settled prior to applying for a car loan, this will increase your chances, as paid defaults on your credit file, look much better than unpaid defaults.

Tip 2 – Legal Help

If you dispute any history noted on your credit file, you should seek legal advice from a company that specialises in credit files. They can give you the best advice and assist in having this mediated, and can often result in any disputed defaults being removed altogether from your credit file, which is the ultimate outcome and could end up saving you thousands on interest by giving you access to better car loan interest rates.

Tip 3 – Credit Assistance

Using a finance broker that specialises in bad credit car loans may increase your chances of getting a car loan. They will understand their lenders policies and guidelines and could save you time by not applying to motor financiers you would have never qualified for. They can also guide you in the right direction for what documents you need to collate and ensure everything is right prior to applying, and this can sometimes mean being patient and waiting to ensure the best outcome for you.

Tip 4 – Your Bank Statements

As most bad credit motor financiers want to review at least three months of your bank statements, you should understand what they will be looking for. Any direct debits that come out regularly, you should ensure that the funds are always available at the time of debit, and they will be looking to make sure your bank balance doesn’t go into a negative balance, unless you have an approved overdraft. A motor financier can get a lot from your bank statements, such as regular bills and to see how consistent your income is.

Tip 5 – Employment

As your income is derived from your employment, any motor financier will want to ensure your income is secure, and by that I mean that your employment is secure and you do not change jobs too often. For someone with unstable employment history, this can raise concern if there will be any unpaid periods in between jobs.

Next article Solid Gold: 3 Smart Investment Tips
Previous article The Best Part-Time Jobs for College Students

Related posts