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12 November 2013

Checklist Before Applying for a Bad Credit Car Loan

If you know you have Bad Credit, there is action you can take before you apply for a car loan. Here’s a list that’ll help you get a fair bad credit car loan.

1. Prove you have an income and better yet, savings

Bad credit holders are big risks. Lenders hate risks. If you’re gainfully employed, you’ll have to prove this to any prospective lender. Get together pay slips, deposit stubs or bank statements that show you’re a low risk to lenders.

2. Consolidate or re-negotiate your debts

If you have a lot of outstanding debt, consolidate what’s often a patchwork of debts into one loan. Other options include getting help with budgeting or negotiating informal arrangements with your creditors. Bottom line is, show car loan lenders you’re making an effort to clear your debts.

3. Check and fix your credit history

A little known fact is that credit histories sometimes have mistakes. Big mistakes, in some cases! To start fixing, you’ll have to obtain your credit history. Go through it carefully and pick up on any errors and fix them. Don’t know where to start? ASIC’s MoneySmart website can point you in the right direction.

By doing some basic checking, it might go a long way in making a sick credit history look much healthier!