fbpx
Things You Should Know About Getting Finance With a Bad Credit Lender

Things You Should Know About Getting Finance With a Bad Credit Lender

Getting finance with a lender that looks after people who have had bad credit in the past is a complicated process. These lenders are also known as non-conforming finance companies or second chance lenders. It may be a complicated process but it’s still very achievable and much more so than a good credit lender such as your traditional banks and finance companies. Why is that? It is because second chance lenders are more forgiving of your credit problems in the past and as the name suggests, are more willing to give people a second chance.

Bad credit lenders may not be the cheapest option, but they are also not the most expensive. The unfortunate thing is in almost every case, bad credit lenders are the only option a person with bad credit history has if they are in the market for a loan. Interest rates with these lenders as well as their fees are not as attractive as what your traditional banks would offer, they are higher. However, interest rates and fees vary from lender to lender and are important considerations to factor in when making the decision of what lender to use. Make sure to get an upfront quote for the amount you are wanting to borrow inclusive of all fees and charges. The quote will help you make an informed decision on how big or small your loan size can be as well as your ability to afford it based upon your weekly/fortnightly/monthly budget.

At Auto Link Finance, we provide all our customers with an accurate quote upfront. We base our quotes on your individual credit history and circumstances which helps us determine which lender and their product best suits your needs. This is what give us the ability to give accurate quotes to our customers upfront including the loan amount and all fees and charges included in the loan. This is all done before our customers commit to the proceeding with the finance and determined once the loan assessment is completed so they can make an informed decision on whether they would like to proceed or not proceed. This is how it should be done by all brokers for all customers however this not the case. So, if you are talking to another broker and cannot get the aforementioned information upfront, then I would strongly suggest trying someone else who can give you the facts such as ourselves.

Deciding on a loan amount can be tricky, especially if you do not have a particular vehicle in mind to help guide on how much to borrow. It is important that you do not look at getting a large lend with a bad credit lender unless you can afford without any issues whatsoever. A good starting point for a loan amount would be between $10,000 – $20,000. Look at this loan as the steppingstone towards two things. First thing is you will be restoring your credit by taking a loan with a bad credit lender and secondly you will have a vehicle that will be sufficient until you restore you credit. Once you have restored your credit, you can finally approach good credit lenders who have cheaper much cheaper interest rates and fees. That also means you can afford to borrow a larger amount and get the bike, boat or car that you have always wanted.

If you are in the market for finance and due to your bad credit, you need to approach a bad credit lender, the best recommendation we have for you is to utilise the services of a finance broker that specialises in the bad credit area. The reason for this recommendation is that there are a multitude of different bad credit lenders out in the marketplace, each with different sets of lending criteria and guidelines they follow. Each application you make with a lender leaves a mark on your credit report, affecting your credit score negatively. With such many lenders to choose from, it is incredibly difficult for someone without the knowledge of all these bad credit lenders criteria and guidelines to be able to decide on the best available loan for them. This is where a good, experienced and reputable broker such as us come in.

Auto Link Finance’s senior loan specialists will listen to your situation and assess your personal circumstances to see if you qualify for finance. If you qualify for finance, we match your application against all the lenders lending criteria and guidelines that are available to us from our extensive lending panel. This is done to find the best interest rate available to you as well as the cheapest fees and charges. This way you only have one application being submitted to a finance company which means only one enquiry on your credit report as opposed to several if you were to not go through a broker. Only one enquiry compared to several will not negatively affect your credit rating, which is important as the lower your credit rating, the less likely chance of your loan being approved. As you can see, there is a well-structured process for getting this done right for you, and for getting it done right the first time. With 35 years’ experience in the finance industry, Auto Link Finance has been getting it right the first time for all our customers, so give us a call now to make your bad credit loan an easy one. Call us on 1300 982 279 to speak with one our senior loans specialists or click the Apply Now button.

Ready To Apply?