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5 tips on how to get a bad credit loan

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If your business runs a small fleet of vehicles, you need to read this

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15 November 2013

If your business runs a small fleet of vehicles, you need to read this
A competent broker will help you navigate the maze of documentation you need to improve your chances of securing a car loan

This content has been submitted on behalf of carloans.com.au

STRUGGLING to find someone to give you a break due to your credit history?

There are specialist motor financiers that can assist those who would not normally qualify for a standard car loan, but they may assess your application in more depth, so we put together a few tips that may help.

 

Tip 1 – Use A Bad Credit Finance Broker

There are heaps of finance brokers available, and heaps that also specialise in car loans only, but if you can find one that specialises mainly in bad credit car loans, this can increase your chances of a loan approval.

A bad credit car loan broker would have a few different options and can guide you through the maze of required documents and evidence you may need to give you the greatest chance of obtaining a bad credit car loan approval.

 

Tip 2 – Learn What Your Credit File Means

First of all, you should obtain a copy of your credit report. Once you have your credit file, try to learn what it all means, and from there on, regularly obtain a copy of your report, so you can see if there has been any changes. You can enquire further with the credit reporting agency about the different sections on your credit file and what they mean.

Once you understand this, you can actually see exactly what bad credit you have and who has listed these. If you are able try to resolve these issues, do so in a timely manner.

 

Tip 3 – Don’t Apply Everywhere Hoping For The Best

The more places you apply that you would never qualify for, the more lenders that will have on file forever that you had bad credit in the past. Although bad credit may be removed from your file, if you actually applied to a number of lenders whilst it was there, this will stay on each lenders own records, so next time you apply to that lender and your credit file is clean, they will still be aware of your previous concerns and may still treat you the same.

 

Tip 4 – Small, Short Term Loans May Not Improve Your Situation

Quite often people think by starting off small, this will give them some sort of credit prior to applying for a car loan. The short term financiers, often referred to as pay day lenders, can impact negatively on your application. Pay day loans can be seen as a requirement for short term cash, perhaps because you were struggling off your normal wages, and so the bad credit car loan provider may feel that you are already struggling without a car loan, and may see you as riskier.

 

Tip 5 – Seek Legal Independent Advice

There are quite a few companies that specialise in cleaning up credit files. They can provide at a cost a service that would review the measures taken by those who listed any bad credit on your file, and if the correct procedures weren’t followed, they may be able to have this removed altogether off your credit file, which  is the ultimate outcome.

Kyle Rhys is a finance expert of 15 years who is currently working in Australia. You can read more about Kyle’s work at carloans.com.au where he explains more about securing loans with bad credit.

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Matt Morton

Matt Morton

Matt Morton is an automotive content writer for Business Car Manager

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