Why Payday Loans Affect My Credit Rating.

Why Payday Loans Affect My Credit Rating.

Why Payday Loans Affect My Credit Rating.

Payday loans are one of the most controversial financial products currently available. While there is no question that payday loans do affect your credit rating, the bigger question is perhaps whether they have a negative or a positive influence. With some payday lenders marketing their products under the guise that consumers will see their credit rating benefit upon repaying on time, it is certainly a question that needs to be addressed.

How Payday Loans Appear on Your Credit File

As with any other type of borrowing, almost all payday loans will appear on your credit file, under the consumer credit section. Remember that your credit file shows the following information:

Credit enquiries, meaning applying for a payday loan, even if you ultimately don’t take out the loan, the enquiry will still appear on your file.

The types of credit you currently have open accounts for.

  • The terms of the account, including the opening and closing date. A short time between dates will highlight the short-term nature of the loan and perhaps that it is a payday loan.
  • The credit limit of your accounts, in the case of a payday loan this will be the amount you borrowed.
  • Repayment history.
  • Details of any defaults, judgements and overdue accounts.

Even if a payday loan did not affect your credit rating, lenders are still able to see whether you have any payday loans by looking at your credit file. Some lenders/banks may not lend to you if you have any active payday loan accounts. Others may even have a policy not to lend to you if you have had any payday loans within a specific recent time.

How Payday Loans can be Positive

A payday loan on your credit file may be positive in that, if you meet your repayment obligations to the lender, you will have a clean repayment history and you may be seen as a reliable borrower, at least for this type of financial product.

However, different types of credit are weighted differently when it comes to credit scoring. For example, if you make mortgage repayments on time every month, these are given more weight than a payday loan. The full range of factors listed above can contribute to your credit score, and may also be considered by lenders, who will use your credit score but only as part of a wider consideration of your credit application.

How Payday Loans Can Affect Your Chances of Getting Credit

Depending on the number of credit enquiries you have made, the types of credit you use, and the terms of your borrowing all being visible on your credit file, payday loans may end up contributing to a lower credit score. Even if you prove to be a reliable borrower and never make a late repayment, the fact you are reliant on payday loans can be a signal that your regular financial management isn’t as good as it should be, especially if you find yourself reliant on short term borrowing on a regular basis.

From the perspective of the lender, remember that they are regulated and are duty bound to act responsibly. If you are reliant on short term borrowing on a regular basis, lenders may decide it wouldn’t be responsible to accept you for a long term asset loan or a credit card, as your credit history may raise questions as to how your circumstances would enable you to meet your repayments.

Payday loans tend to have higher interest rates, which means consumers often find themselves repaying one loan but then needing to take out another shortly afterwards. This pattern has the potential to be disastrous for your credit rating and how lenders will view your credit file, so while you may feel you have no option but to take out a payday loan in some circumstances, ideally they are something to avoid at all costs.

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Second Chance Bike Loans

Second Chance Bike Loans

Second Chance Bike Loans

Having trouble securing bike loan approval with bad credit? Sadly, you are not the only individual, in reality the big banks & good credit lenders tend to shun an extensive amount of credit applications for a divergent measure of reasons, such as a bad credit history, defaults, judgements, previous bankruptcy, part 9 agreement, too many credit enquiries and a few more.

As difficult and frustrating it may be trying to get a loan with the big banks and good credit finance companies, it doesn’t stop there, they are not the only lenders around to secure a loan when you have had a bad credit history in the past.

Auto Link Finance specialises in bad credit chance bike loans, and we believe in giving everyone a fair go, providing that you are currently in a good financial position and have been for the last 6 months.

Don’t let bad credit stop you from getting your dream bike. Speak with Auto Link Finance, we are one of Australia’s leading provider of bad credit bike loans and could help you get off to a good start and back on track.

The big banks and good credit lenders tend to decline those requiring bad credit loans and leave you often in the dust. Don’t stop there, contact us about acquiring a bad credit bike loan to get that second chance you deserve. At Auto Link Finance we are a finance brokerage that specialises with bad credit bike loans to help those who were unfortunate to fall into bad credit.

We can also tailor your loan to suit your purchase, for example if you apply / get approved for a $20,000 bike loan, and you later find a bike for $17,000 then we can lower the loan amount thus making your payments lower and paying back less interest. Every lender obviously has varying guidelines set out for applications received.

Our service doesn’t stop once we have secured our customers a second chance bike loan. Ideally down the road, if you have been cruising well with the bad credit bike loan, with the addition you have restored your credit history back to normal (18 month time period) with a distinguished repayment history, the offer is given to refinance the loan.

This is only with the provision that you ensue our stern instructions and guidelines that we grant on repairing and restoring your credit. Your auto loan refinance can help you annex a lower interest rate, inclusion of lower loan fees, and an addition of more flexible loan features. Don’t be left in the dust. Apply now for a free loan assessment to get your bad credit bike loan up and running and let Auto Link Finance be the constituent to your dream bike.

We are an Australian finance brokerage that specialises in bad credit loans with over 30 years’ experience in the finance industry, let us get you started with that bad credit bike loan. You can start today, just call us on 1300 982 279 for a free loan assessment or apply online now.

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Uber Car Loans

Uber Car Loans

Uber Car Loans

From bursting onto the transportation scene as an illegal ridesharing business to evolving and progressing into the highly successful and lucrative ridesharing business it is today, there is no denying that Uber has become exceedingly popular, and Uber has left its mark on the transportation industry as we know it. Uber has swept our nation giving people a cheaper economical alternative to the taxi industry, of which has caused outrage amongst the taxi drivers in the industry.

Uber is also extremely accessible, almost any person can be an Uber driver providing they meet the requirements set out by Uber which are simplistic and easy to meet. Another benefit of Uber opposed to taxi driving is the cost of a taxi driving license which are quite expensive. Uber drivers on the other hand do not require a taxi license, which further adds to Uber’s accessibility. With all that in mind, you are left with the question of what car should you choose to begin your Uber career. Perhaps you are an established Uber driver, then it may be time for an upgrade. Regardless of whether you are just starting or upgrading, choosing a vehicle can be quite difficult, after all as an Uber driver, your car is your office and you are going to be spending a lot of time in it, therefore making the correct choice is imperative.

Below is the list of requirements for an Uber X Vehicle.

Uber X Vehicle Requirements

  • Vehicle must be in excellent working condition
  • No older than 10 years old
  • Must be able to seat 4 passengers and the driver
  • Must be able to pass a Redbook Inspection
  • Vehicle must be registered relative to your state E.g. a Victorian Uber driver must have their registered in Victoria
  • Vehicle must be free from cosmetic damage and commercial branding
  • Vehicle cannot be a taxi, government, branded or rebuilt vehicle

As an Uber driver looking at purchasing a new vehicle there also some other factors you need to take into consideration that were not listed above.

Safety – Safety is by far and away the most important feature to a car to both you and your customers. Whilst you are a safe driver, other drivers may not be, so having a car that can be prepared for the unexpected will be a wise choice.

Comfortability – As previously stated, your car is going to be your new office, so you want something that you are comfortable sitting behind the wheel of the whole day. You are also going to want your customers to have enough space at the back and possibly some space for any potential luggage they take.

Operating costs – Fuel efficiency, insurance costs and servicing are some important costs to keep in mind, a fuel-efficient vehicle is ideal, so fuel costs don’t take a chunk out of your wallet. Servicing and insurance costs tend to be higher for the “luxury” brands such as your BMW’s and Mercedes so it may be best to avoid these if you are tighter on budget

Vehicle Price – A common misconception is that you must spend a fortune on getting a brand spanker to keep up to date however that is not the case. See below for some affordable 2018 options that we recommend you look at.

Toyota Camry Ascent Hybrid 2018 – $29,990

Toyota is a Japanese powerhouse in the Australian Car Market, bringing us reliable cars like the Corolla which is well known for being practical and easy to drive, the Camry Ascent Hybrid is no different. It is currently a popular choice across taxi companies and the Australian public alike, this is not without good reason. The Camry feels just as nice and easy to drive as the Corolla, if not better, however unlike the corolla, the Camry is more spacious allowing for more leg room for both the driver and the customers. The Camry is also nice and quiet at lower speeds thanks to its hybrid drivetrain allowing your customers to have a conversation without competing with the noise of an engine. When you are buying a hybrid, fuel efficiency will be at the forefront of your mind, and the Camry is the most efficient out of the cars on this list. The Camry also features a five-star ANCAP Safety Rating which will give you and your passengers peace of mind.

Mitsubishi Outlander 2018 ES 7-Seater – Starting from $30,990

If you have a larger family and planning to only do Uber on the side, the Mitsubishi Outlander might be the car for you. The Outlander is a relatively flexible car as although it is five-seater SUV, it can transform into a 7-seater, perfect for when the unexpected happens. The back 2 seats are not the spacious under the sun however it is more than serviceable for children, adults will still fit in the back but not as comfortably. The Outlander has Apple CarPlay and Android Auto which are standard across the range, which is a nice touch, so you can use your favorite music streaming app such as Spotify or use your own maps app over the cars sat nav. The Outlander and the Camry share one major benefit, the safety rating. The entire series of Outlanders were awarded a five-star ANCAP Safety Rating when they were tested in 2014. 

Ford Mondeo Titanium Wagon 2018 – starting from $33,190

The Ford Mondeo is a car that not a lot of people have heard of, when was the last time you remember this car show up on a Ford Ad on TV? The Mondeo is a little bit more expensive then the previous models listed in this article, but this is affordable luxury that you and your clients will love. The rear seats are both comfortable and have plenty of legroom. The rear seats are also quite spacious so having 3 adults in the back is not a problem. Safety is also not a problem as the Mondeo shares the same five-star ANCAP safety rating that the aforementioned Outlander and Camry have. The Australian public might still be feeling a sting of sadness and disappointment after the end of the Ford Falcon dynasty, the Ford Mondeo may just be the replacement that not only we are looking for but also may be your next uber car.

You will notice some things in common with the above cars, they are all roomy and spacious. They are all fuel efficient and most importantly they are all safe. All of which are extremely important when it comes to selecting not only a car in general, but even more so when it comes to getting an car for Uber.

So, you now know what the requirements are for an Uber X vehicle, you know what to look out for in a car and you have some examples above of what to purchase there is only one thing left to do, buy the car. That is where Auto Link Finance comes in, we can help you achieve a commercial car loan that is best suited towards your own personal circumstances.  Don’t put off getting your car any longer, call us on 03 9368 3298 or apply now to get your application started today.

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Bad Credit Truck Loans

Bad Credit Truck Loans

Business Xpress Truck Loans

Are you having trouble getting a commercial loan for a truck you desperately need to add to your fleet? Has a mistake led to some bad credit that is continuously coming back to bite you? Tax Returns or other Financials not completed due to more important things keeping you busy?

Trust us, you are not alone in the predicament mentioned above. However just because bad credit is haunting your credit report, do not let it stop you any longer from getting that new addition or upgrade to your fleet.

At Auto Link Finance we understand the difficulties and annoyances of getting commercial finance today, most lenders set their guidelines out for businesses to have their financials/tax returns done and for them to have clean credit leaving those with bad credit out to dry. Be that as it may, Auto Link Finance is now able to offer a new product we have brought on board called Business Xpress Loan.

Business Xpress Loans have made getting commercial finance such as bad credit truck loans easier than ever. What makes this product different to others for bad credit truck loans, you may be asking? First of all, we are understanding that your priorities will be on the road, driving your truck or running your business so no financials, no worries, all that is required for income verification is 3 months business bank statements showing consistent income and enough income to service the loan payments.

What about defaults and judgements?

We can assist with those too, provided there are no unpaid finance defaults or judgements are over $3,000 within 2 years unless it has been under a payment arrangement for at least 6 months. We can also help if there are no unpaid finance defaults or judgements over $7,000 in 5 years unless it has been under a payment arrangement for at least 6 months.

There are some exceptions to the amount of each default/judgments listed above, if you can display a good payment history on any other current loan/rental contract you currently have that has been running for 12 months or longer with no late payments.

Loan amounts range from $10,000 all the way to $75,000 with loan terms between 36 – 84 months depending on the age of the truck.

If you are a discharged bankrupt, that isn’t an issue, all that is required for you to be accepted is to be a minimum 6 months discharged from bankruptcy.

Minimum Requirements to Qualify

  • Must be ABN registered for at least 6 months
  • Must have at least a 10% deposit, i.e. if the truck purchase price is $75,000, then your deposit towards the purchase will be $7,500 and the loan amount would be for $67,500
  • Must provide 3 months of business bank statements showing all business income going into the business account.
  • Must not have any payday loans
  • No unpaid finance defaults or judgements are over $3,000 within 2 years unless it has been under a payment arrangement for at least 6 months.
  • No unpaid finance defaults or judgements over $7,000 in 5 years unless it has been under a payment arrangement for at least 6 months.

Not after a bad credit truck loan? Perhaps another piece of business equipment or vehicle takes priority, that’s no worries, our Business Xpress Loans apply to a wide range of business equipment and vehicles. So, don’t put it off any longer, click the apply now button and reap the rewards of a Business Xpress Loan today.

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Part 9 Debt Agreement Loans

Part 9 Debt Agreement Loans

Getting A Car/Motorbike Loan Whilst In A Part 9 Debt Agreement.

Important things to know before you apply for a car/motorbike loan whilst you are in a part 9 debt agreement, and below we will also list out what you will need to supply upfront as part of the loan assessment process.

For those of you who may or may not be aware, a part 9 debt agreement is a form of bankruptcy, and due to this being a form of bankruptcy there are limited second chance lenders in the market place that will assist/consider an application for a car loan or motor bike loan, at this stage the only loans available for those in a part 9 debt agreement is either a car loan or motorbike loan, and there are only 3 second chance lenders available to choose from, whilst all other second chance lenders will require you to be discharged from the part 9 debt agreement first.

Below are the requirements/conditions to qualify for an opportunity to get a loan whilst in a part 9 debt agreement.

How Long You Need To Be in a Part 9 Debt Agreement.

  • With lender 1. You need to be in your part 9 debt agreement for 6 months minimum
  • With lender 2. You need to be in your part 9 debt agreement for 12 months minimum
  • With lender 3. You need to be halfway through your part 9 debt agreement

Maximum Loan Amounts

Loan amounts that are available for those in a part 9 debt agreement can be anywhere from $12,000.00 to $25,000.00, there are a few factors that will determine how much you can get which will be based on your overall profile, how much surplus income you have that can be used for the repayments after all liabilities have been deducted, how long you have been in your job, and which one of the lenders we can use as listed below.

  • Lender 1 & 2. Will only fund a maximum of $12,000.00 for the purchase, plus their fees on top
  • Lender 3. Will only fund a maximum of $25,000.00 for the purchase, plus their fees on top

 Other Minimum Requirements.

  1. Employment status and term of employment
  • You must be employed!
  • Full time permanent – 3 months minimum with current employer, with a total 12 months continuous employment history.
  • Full time casual – 3 months minimum with current employer, with a total 12 months continuous employment history.
  • Part time permanent – 3 months with current employer, with a total 12 months continuous employment history.

Compulsory Documents Required & Conditions

  1. The last 3 months transaction history of all bank accounts held in your name, directly backwards from the day you apply.
  • Bank statements must not have any dishonors on them and must also not show that you overdraw your account on a regular basis.
  1. Last 2 pay slips, no more than 30 days old from the day you apply
  2. A copy of your part 9 statement from the start date showing your repayment history
  • Your part 9 statement must not show any late payments.
  • Your part 9 must also be up to date and have no areas showing.

Other Conditions.

  1. You must not have any new defaults or judgements after the date you started your part 9 debt agreement.

If you require any further information, please contact our office and speak with one of our Senior Loan Specialists on 1300 982 279

Or apply now for a Free Loan Assessment using the Apply Now button below.

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