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5 Tips on how to get a car loan with Bad Credit

When you have bad credit, getting a car loan may seem impossible, but there are a few options out there, you just got to know what is required and who you should speak to.

Here are 5 tips to assist in getting a car loan with bad credit.

Tip 1 – Get A Copy Of Your Credit File

You can obtain your credit report for free, you just have to wait about 10 business days to receive it, or you can pay for it to get it within 24 hours. You should learn what is on your credit file and who has listed any adversities, so you can address these prior to applying for a car loan.

Tip 2 – Resolve Any Problems On Your Credit File

If you have discovered that the credit issues are due to your own error, then you should try and settle these if at all possible, prior to applying for a car loan. Be in contact with the creditors and find out why they are there and how you can come to arrangements to get these resolved.

If your credit issues are disputed, don’t bury your head in the sand and hope they will go away, get some professional assistance to mediate, such as a legal firm who specialises in credit files, or the relevant industries ombudsman.

Tip 3 – Using The Services Of A Finance Broker

A Finance broker who specialises in bad credit can also guide you through the requirements to get a bad credit car loan. Not only will they ensure you don’t waste your time applying to a lender that you would never qualify for, they can make sure that you apply at the right time, when all your documents are ready to be presented.

Tip 4 – Make Sure You Can Afford A Car Loan

If you are already struggling with your day to day expenses, it would not be the right time to apply for a car loan. With bad credit car loans, the motor financier will ask to review your bank statements to establish this, so it is important that your accounts never go into a minus balance, through direct debit dishonours, or overdrawn amounts.

Tip 5 – Employment Stability

If you have just started a new job, or you have had many jobs in a short period of time, it may be an idea until you know that your job is secure, as this will also show the motor financier that your income is secure. This is very important when applying for any type of loan.