Category Archives: Car Finance

Want To Buy A Car on Finance In Australia? Buy Now As It Is the Right Time

People say timing is everything! There sure must be a reason behind it. This statement proves true in several cases and when you are about to buy a new vehicle, you need to make sure that you buy one at the right time. Loans for Cars in Australia Have Become Quite Affordable in the Present Time If you are in Australia, make sure that you opt for cost effective and affordable car loans at the best possible time. If you are an Australian and wish to opt for a loan for vehicle, then this indeed is the best possible time for you. Make sure that you go through the below mentioned points so that you can select one for yourself without much difficulty. If you have not been careful, the official cash rate has lowered down...

What is meant by “Bad Credit OK”?

We have all see the adds from non-conforming lenders promising to help you where others have failed. They are not put off by bad credit or lack of financials. Does this mean that a person who has been refused everywhere can qualfy? Probably not. Who are bad credit lenders? Bad Credit Lenders are lenders who specialise in offering loans to borrowers who fall outside the traditional lender criteria. Traditional lenders like the banks will not consider borrowers with a blemished credit history. The key word in this sentence is "history".  Borrowers are often confused into thinking that Bad Credit Ok means a borrower with current unpaid bad credit can be assisted by a bad credit lender. Generally this is not true. Bad credit history may not be an issue, but your bad credit must be in the...

What is your credit score?

Credit score is a fairly new concept to Ausralians. Many of us are aware that as consumers we have a credit file which maintains details of our credit activity. This is where any evidence of a credit default, a judgement or a bankruptcy would be recorded and would affect your ability to qualify for finance. However we were never used to having a single number - a credit score, sum up our credit worthiness. It used to be that you had to be careful not only about makig loan  payments on time but also about excessive applications for credit as these were able to adversely affect your credit rating despite all payments being in order. Since we have moved to comprehensive credit reporting earlier this year, there appears to be more use and awareness of...

Bad credit car finance – what you should know!

Bad credit car finance may become essential for anyone from a new borrower who has no credit history at all in Australia to a individual who has had some credit problems in the past but has now recovered and is on top of things. How much deposit is needed Although bad credit home loans always require a sizable deposit the same is not necessarily true of car finance. While having a deposit can certainly improve your chances of car loan approval and may even reduce the loan costs, a deposit is not necessarily essential. There are lenders in Australia who can offer 100% car finance. Full Doc or Low Doc Even bad credit borrowers have a choice of applying for a full doc or a low doc car loan. Full doc loans may require payslips and bank statements for...

Should you trust your car finance provider?

This is not a question that enters the mind of many car finance seekers. However if you have been declined car finance in the past, and have tried numerous lenders/brokers with no success, you should be on guard if you find someone who is able to assist where everyone else has failed. There is no such thing as a secret lender who is only known to a single finance broker. Most brokers have access to the same finance providers when it comes to bad credit car finance. Anyone who is having some doubts about a finance approval needs to consider the following: Lender license/accreditation When in doubt it is a good idea to verify that the lender you are dealing with holds the necessary license and accreditation to offer loans in Australia. Especially if you have had little...

Bad credit car finance deal breakers

Of course you can qualify for car finance despite a history of bad credit. There are numerous lenders whose sole focus is the provision of finance to the bad credit market. What is important to understand is that bad credit finance is not a 'free-for-all'. Not all all finance applications will be approved. There are some problems that are too big to solve. Here are examples of what we i finance would call a 'deal breaker' when it comes to qualifying for bad credit car finance: Borrower has insufficient income Bad credit or not, every application for finance must pass the income test - ie. the borrower needs to demonstrate that they can afford the loan repayments. This may mean that despite the borrower thinking that they can afford a new car loan, lender calculations may show otherwise. In...

Debt solutions for bad credit borrowers

It can be easy to believe that bad credit is the end of the road and there is no opportunity to qualify for any assistance if you are carrying debt defaults. It is true that most banks and traditional lenders will be quick to decline a loan application from an individual with a bad credit history. However not all debt solutions center around a new personal loan. In fact many people have put themselves further behind by seeking to borrow further without thinking rather than take a smart approach to their circumstances. Thinking outside the square There may be ways that you can reduce your debts without necessarily going into more debt. Strategies employed by people fighting the debt monster include working on paying down one debt at a time rather than panic and give up. You may...

Car finance after a Part 9 debt agreement

A debt agreement can happen to anyone. Things that are completely outside of your control can easily set events into motion that may do untold damage to your credit standing and ability to manage debt. For some individuals the only way of getting out of unaffordable debt is to either declare bankruptcy or enter a part 9 debt agreement. Both are government regulated programs to help individuals manage unaffordable debt. Once an agreement is reached with the majority of your creditors, its details are recorded by a credit reporting agency on your credit report. Potential lenders will know that individuals have entered into a debt agreement and the details thereof. Creditors can use this information in order to make a decision on whether to extend credit to an individual. Unfortunately qualifying for finance during a debt...

Bad credit car finance – how is your application assessed?

When it comes to car finance, your bad credit history will not necessarily result in a loan approval or a loan decline. Lenders perform a more comprehensive review and assessment of the potential borrower than simply the status of their credit report.  Unfortunately some people believe that a bad credit lender will offer finance to anyone with a pulse - that is of course incorrect. Here are some of the main loan assessment criteria considered by a potential lender in receipt of your application for car finance: Are you working? This is very straight forward - if you want to borrow money, irrespective of your personal wealth or credit history you must demonstrate that you are working> This an be a PAYG job, own business or an independent source of income from various investments. What you can...

Unsecured debts – know your options

This is a common scenario - individuals who find themselves in-too-deep with unsecured debts and no real way of getting out of this debt. Borrowers whose credit history is still unimpaired generally will try to take on a new personal loan to repay some of their other unsecured expensive debt. The problem is when one finds out that they are unable to qualify for a debt consolidation loan. The Bank has said "no" and they start running around in despair looking for a bad credit lender. However bad credit lenders can not offer unsecured loans beyond a thousand or so for a few weeks. Nonetheless there are some available options and should be clearly understood before deciding which way to proceed with debt elimination. Credit card debt When t comes to credit card debt one of the best...