5 Tips About Bad Credit Loans

by | Dec 20, 2019 | Bad Credit Loans, Loan Tips

5 Handy Tips About Bad Credit Loans

If you have bad credit in the past and you’re now financially stable and looking to get a lender to provide you with a loan, the good news is: many reputable lenders are prepared to give you a second chance. Getting a car loan with past bad credit is possible – provided you tick all the right boxes and provide the lender with good reasons to give you a loan and a second chance.

Many people in this situation submit poor quality applications – often the same poor-quality application repeatedly, hoping that one will eventually be approved. Unfortunately, this approach does not work, and it also damages your credit score as every enquiry you make with a lender drops your credit score. Finance companies tend to be quite rigid in their lending criteria – they′re looking for good reasons to approve your finance application, and its best to leave the application process with a reputable finance broker that specialize in this area.

The following tips can assist you in demonstrating those reasons for a lender to give you a second chance.

1. Honesty
It′s vital to be completely honest in every statement/details you make/provide in your application. If you have a bad credit history, you can rest assured that financiers will investigate your loan application closely. Failing to disclose your previous credit history & failing to give accurate information on your loan application, such as how long you have been at your address, all current liabilities, how long you have been at your current job, whether your full time, casual or part time, only for it to be found by the financier is an immediate red flag and your application for finance will be declined.

Of course, honesty alone is not enough – you need also to be careful you make complete statements in your application. Don′t leave anything relevant out. Withholding information – even information that you believe might damage your application – is a much worse idea to hold back this information than full disclosure.

Auto Link Finance encourages full disclosure as part of our free credit assessment process, this way we can give you a true and accurate outcome of your chances to secure a car loan or loan of any type today, and if you don’t qualify for finance today, we will provide you with general advice on how to repair your current situation and when to re-apply with a better chance to get finance.

2. Your Credit History
Always access your credit file online before applying for a bad credit car loan (accessing your credit file is free and easy). It’s a great way to see exactly where you stand. If there′s an entry or entries you don′t understand, you are free to contact the companies listed on those entries for further information. Also, the more legwork you do in the lead-up to your application, the less legwork is required on the part of the application assessor – the result being your application will be dealt with faster. Being well prepared, up-front and complete in your application helps build confidence in the mind of the financier.

3. Banking Records
Your recent bank records are an essential part of a bad credit car loan application, bank statements for the last 3 months from all bank accounts held in your name are a compulsory requirement from all lenders that look at people with past bad credit. These will be reviewed carefully. It′s essential to prove that you can live within your means and demonstrate that you don’t over draw your account on a regular basis, any existing debts you are paying off are being honoured and there are no bounced or reversed payments in that time frame. Having the capacity to save regularly & showing some sort of savings even if it′s only a small amount each week, can also be a great advantage but not compulsory requirement, it is excellent if you can demonstrate the capacity to save – which, when you think about it, demonstrates that you have some surplus income you can devote to loan repayments after covering your regular living expenses.

If your account gets overdrawn regularly, or if any direct debits are regularly dishonoured because of insufficient funds, this reflects poorly on your ability to meet your current commitments and that alone will cause the lender to decline your application.

4. Loan and credit card history
If you have credit cards, or any other loans, your repayment history with these commitments will be carefully reviewed and must be perfect or very close to perfect for the last 6 months. You need to demonstrate a consistent history of making the payments on time. In the case of a credit card, it′s a good idea to demonstrate you′ve made more than the minimum monthly payment required. A solid recent history with credit will go a long way to ensuring your current application is reviewed very favourably.

5. Employment
A reliable, regular income is essential because you need this to service any future debt the financier may approve. If you have a solid employment history, this will reflect well on your application. Generally, you′ll need to have been employed beyond the probationary period with your current employer. If you′re employed on a casual basis, you′ll need to demonstrate a reasonably long relationship with that employer – say, more than 3 months at least, with consistent employment for the last 12 to 18 months. In general, however 3 months in your current employed is still considered to be fine, having had many different employers in a short span of time doesn′t assist a bad credit car loan application, because finance companies are looking for you to demonstrate a solid, stable income source to service the debt.

 As a part of our free loan assessment here at Auto Link Finance, we go over all these items with you to make sure you tick all the right boxes, so as you can see there is a lot to think about when applying for bad credit car loans, bad credit bike loans, bad credit boat loans or bad credit loans of any type, it is very possible to get a bad credit loan in Australia if you tick all the right boxes.

Call a bad credit Loan Specialist now on 1300 982 279, our service is Australian wide or apply on line today to get a no obligation free loan assessment.

 

 

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Bad Credit Loan Check List

by | Dec 16, 2019 | Bad Credit Loans, Loan Tips

What You Need To Check First

It is always better to be prepared when you apply for a loan and you have had bad credit in the past. Our bad credit check list will help you increase your chances.

  1. You must have a steady and reliable income
  2. Any and all income sources must go into your bank account
  3. You must not have had any credit problems in the last 6 months from the date you apply
  4. You must not have more than 2 pay day loans current at the time you apply
  5. Any current loans or debts you have, must have a perfect repayment history for the last 6 months from the date you apply

Employment

  1.  Casual employment, greater than 3 months with current employer
  2.  Part time employment, greater than 3 months with current employer
  3.  Full time employment, greater than 3 months with current employer
  4.  Agency employment, greater than 6 months with the one agency, with consistent employment in that time

 

Other income sources we accept on top of the above.

 Centrelink

  • Family Part A & B
  • Parenting payments
  • Disability Pension
  • Retired pension
  • Self-funded pension
  • Disability support pension
  • Veterans Pension

Compulsory documents required from you when applying for a bad credit loan.

  1. Evidence of all income sources, if employed we would require your last 2 pay slips, if you also get centrelink income then we would need a recent centrelink income statement
  2. A transaction listing from all bank accounts held in your name for the last 90 days
Getting a Car Loan With Defaults

Getting a Car Loan With Defaults

by | Dec 2, 2019 | Bad Credit Loans, Car Loans

Getting a Car Loan With Defaults

Getting a car loan with defaults/judgements
Getting finance once you have had defaults/judgements is very achievable and yes you can, but isn’t easy as most people think, why you might ask, because there are a lot of various scenarios that must be considered that can either get you approved or declined, its not as straight forward as having bad credit, applying for a loan and getting approved.
Everyone’s circumstances are different, there are various types of defaults and court judgments, some are accepted, and some are not accepted, in this article we are going to try and give you a better understanding of this and provide you with some important information on what will help/increase your chances of being more successful when applying for a car loan with a bad credit history.
When applying for a second chance car loan, there are a few things that a lender must consider when assessing an application which will make all the difference on a successful outcome or not, these are listed below.

Your check list for a successful outcome

1. Employment
You must be employed in your current job for at least 3 months, of course the longer you have been in your current job the better it is.

2. Current financial position
Your current financial position and the last 6 months, a lender is going to look at this to see that you are now and for the last 6 months in a good financial position and you are not currently and for the last 6 months going through any financial hardship, if you are then they won’t give you a loan, its common sense don’t you think.

3. Current debts
Current debts/loans you currently have must have a perfect payment history for the last 6 months only, if you are missing payments on any current commitments, then this will display that you are finding it hard to manage your current commitments and adding another loan to that list is not financially viable, and you will get declined.

4. Banking conduct/bank statements
Bank statements are a compulsory request from all second chance lenders, and they will need them for the last 3 months and in some cases the last 6 or 12 months, but in almost all cases they only require the last 3 months, the purpose of this is for a few reason listed below.
They will look to see that your pay goes into your bank account and calculate your average income over the last 3 months.
They will look to see that all liabilities have been disclosed on your application to ensure that they have all been allowed as part of their serviceability calculations and you can afford the loan you are applying for.
They will look to see that you are not over drawing your bank account on a regular basis, if you are then this will display that you are currently struggling with the financial commitments you currently have and providing you with a loan will not be viable and you will be declined.
They will also look to see that you are not dishonoring any payments with current debts you are paying off, if they see multiple dishonors here then you will also be declined, the odd exception to this maybe if you have had one or 2 dishonors with a very good reason and the payments were made up immediately then this maybe ok but will be looked at on a case by case basis only.
So, as you can see bank statements are not only compulsory, but they play a very, very important part of a lenders overall assessment when considering someone for a second chance car loan.

5. Pay slips/income
Pay slips are also required and are compulsory, a lender will always request your last 2 pay slips no more than 30 days old.
they must be proper pay slips and not hand-written pay slips, if you don’t get pay slips then they will require a letter from you employer on there letter head (proper business letter head) which will state your term of employment, gross income, net income, year to date earnings, your title and your position such as full time, casual or part time etc.
pay slips are also matched against the deposits going into your bank account for authenticity as well.
Your pay must go into your bank account, if it doesn’t and you get paid cash, then it is almost impossible for a second chance lender to consider your application for a loan, in some case they may want a recent tax return and ATO notice of assessment.
One of the most common questions a lot of people wonder about when considering to apply for a second chance car loan, is do defaults need to be paid, unpaid, on a payment arrangement, how many can I have before it’s to many, and how old do they need to be before I can apply, below we are to try to go over this, however these will be some examples and do not represent a guarantee nor does it suggest that you may me declined as they will all be looked at a case by case basis

Types Of defaults/Judgements

1. Finance defaults/Judgements

  • Pay day lender loans: these types of defaults would need to be at least 6 months old and, in some cases, they would need to either be paid or under a payment arrangement for a period longer than 6 months depending on the size of the default & how many you have.
  • Personal loans: these types of defaults would need to be at least 6 months old and, in some cases, they would need to either be paid or under a payment arrangement for a period longer than 6 months depending on the size of the default & how many you have.
    Credit cards: these types of defaults would need to be at least 6 months old and, in some cases, they would need to either be paid or under a payment arrangement for a period longer than 6 months depending on the size of the default & how many you have.
  • Mortgage: mortgage defaults are very difficult to assist with, these would have to be paid in full, however if it is a small amount for example under $10,000 and has been under a payment arrangement for a period of 6 months or more, then we may still be able to help.
  • Car loans: car loan defaults are one of the worst type of defaults you can have, in most cases these type of defaults need to be paid or at least on a payment arrangement for a period of 12 months or more, and they would need to be more than 12 months old.
  • Rental contracts of any kind: these types of defaults would need to be at least 6 months old and, in some cases, they would need to either be paid or under a payment arrangement for a period longer than 6 months depending on the size of the default & how many you have.

As you can see financial type of defaults need to be at least 6 months or more old, the older they are the better it is and the smaller the amount is the better it is as well, it is always best to check with us or apply for our free credit assessment, this will help determine what we can do for you, and if we cant help, then we can help you sort out a plan that will give you a chance down the track in getting a car loan based on your individual circumstances.

2. Utility defaults/Judgements

  • Gas bill
  • Electricity bill
  • Council rates
  • Water rates

The above utility defaults/Judgements are fine regardless if they are paid or unpaid as long as they are more than 3 months old, however this is also not a guarantee as it would depend on your overall profile and best that you apply for our free credit assessment to see what we can do for you.

3. Telecommunication defaults/Judgements

  • Mobile phone bill/plan
  • Home phone account
  • Internet bill
  • Foxtel

The above telecommunication defaults/judgements are also fine regardless if they are paid or unpaid as long as they are more than 3 months old, however this is also not a guarantee as it would depend on your overall profile and best that you apply for our free credit assessment to see what we can do for you.
How many defaults/judgements can you have?
The amount of defaults/judgements you can have is really depended on the size, type and age of the default, generally more than 5 starts to become a problem, more than 10 is definitely going to be very hard to get a loan at all, however once again it is best to apply for our free credit assessment to find out as everyone’s personal circumstance/profile is different.

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About Bad Credit Car Loans

by | Dec 2, 2019 | Bad Credit Loans, Car Loans

About Bad Credit Car Loans

Unfortunately adverse credit such as defaults or a multitude of inquiries can make getting a bad credit car loan quite challenging at times. However, the senior finance consultants here at Auto Link Finance aspire to make that process as effortless and simplistic as possible for our customers. That aspiration combined with the vast amount of experience our friendly staff possess, Auto Link Finance can assist almost anyone achieve a bad credit car loan.

The first step to achieving a car loan with bad credit is to have an understanding of what exactly bad credit is and how this creates a barrier between you and attaining a car loan. Bad credit describes a respective person’s credit history and suggests that you, the borrower has a higher than usual credit risk using your credit score to estimate that risk. Factors that lead to a lower credit score on your credit report include but are not limited to: Defaults (especially finance defaults), Payday loan enquiries, judgements, bankruptcies, Part 9 agreements & a large amount of enquiries in a short period of time and missing several payments to current loans / ongoing commitments. The greater the amount of negative factors on your credit report, the lower your credit score will drop increasing your anticipated risk of adverse credit. Unfortunately lenders, especially the traditional big banks can decline your application solely based on you having a lower then average credit score.

However a low credit score is not the end of your chances to attain a car loan with bad credit. The experienced and efficient staff here at Auto Link Finance are specialists when it comes to bad credit finance. The consultants here analyse everything from top to bottom, beginning with a free credit assessment to take a look at your credit report to accurately identify what your credit history and correct any potential errors which could cause problems either now or later down the track. The consultants also take the time to explain all the finance & credit technical jargon so you have a clear understanding. Our consultants also delve into all of your circumstances inclusive of your employment and residential history as well as current income to ensure that we correctly assess your application correctly.
As previously stated we are specialists with over 30 years’ experience in finance, when it comes to bad credit car loans, and part of that reason is our large and diverse panel of lenders.

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