Truthful about your financial situation
Regardless of how bad your credit rating record is, you need to be truthful while you are applying for finance.
Bad credit car loan lenders above anything want to see a complete & sincere finance application.
Credit assessors will investigation details in your application against your personal credit report & score whilst also looking at your personal statements for your spending history and regular credit activities.
Any inconsistencies between your application and your financial records will decrease your credit worthiness a lender requires in order to approve your car finance application.
No matter how bad you think your application for bad credit finance appears, an honest application is more likely to be approved.
Personal bank statement behaviour
When a credit assessor is looking at your application file, one of the most significant factors to a bad credit car loan application is bank statement management.
A lender will always require a copy of your personal bank statement over a period of 90days some longer to determine your personal spending habits and if you have any undeclared expenses in your finance application.
They will also take note if the account ever goes into overdrawn balance which will not be considered upon favourably.
Make certain your savings account always has sufficient funds to cover any regular direct debit payments, excellent activity with direct debits is extremely important.
If you can also show regular savings – even small amounts, this can considerably help your applications chance of being approved as well.
Lenders examine personal savings as supplementary income that can be used to service a car loan in addition to your steady income.
Your employment situation
Without confirmation of employment it’s becoming progressively more difficult to gain approval for a car loan.
Lenders are looking for stable employment which can be either casual, part-time or full-time work.
If you’re a casual employee, make sure you have documented a track record of 12 months or more in the same role or industry as this will be highly valuable to your application approval success.
This provides evidence to a credit assessor to determine what your future income will be and also your personal capacity to service the monthly loan repayments moving forward.
Part-time and full-time employment applications typically requires a stable working history within your job and industry.
Your current residential status
Sometimes not often, lenders will look at your residential status to identify and determine how stable you are.
The more times you move home, the less stable you appear to a lender that takes this into account when assessing an application.
Nevertheless, many people have reasonable explanations for this and if you have evidence of this, it will assist your loan applications chance of being approved if this ever arises.
However, the underlying fact here is that living in a short-lived way is seen as unstable and a high risk proposition.
Therefore, if you’re planning to apply for car finance in the near future, you need to factor all of the above into your consideration.
If you would like to know more on any of the above please feel free to contact us here.