Car Financing with Bad Credit History

by Emily John Digital Marketing Service Provider

Auto finance, or most widely known as Car finance in Australia refers to the use of financial products in availing a car without the arrangement of exploiting the option of a full-cash payment system.

There are two types of car loans prevalent in Australia:

1.       Secured loans

2.      Unsecured Loans

 

1.      Secured loans

A secured car loan necessitates borrowers to give the lender some form of property as security. If for some reason the borrower is unable to repay the loan, the lender has complete right to confiscate the property.

2.     Unsecured loans

In this case the borrower is not bound or required to pay any property as collateral security. Almost anyone can apply for such unsecured loans. At times these loans turn out to be faulty; hence they are termed as bad credit Car finance or loan.

Bad credit history:

If at some point you have defaulted on paying repayment of loan, or you have been associated with any kind of debt agreement or applied for a credit card; all this information goes into your credit file. This will in turn affect your financial record for years to come.

Different credit bureaus keep track of all your financial transactions. They calculate your risk as a borrower and set your credit score. Low credit scores can pose risks in the future and might be difficult for you if you want to avail loans.

If you have a bad credit history, you can still avail a Car Loan as some reputed lenders are eager to give you a second chance. The following tips and trick can help you apply for financing car loan for bad credit history:

·         State clearly all the necessary details in your application

·         Be honest while filling up the application form

·         Be aware of your credit history before applying

·         Keep track of your finance

·         Make sure your source of income is stable

·         Work on improving your credit history

 

Car finance for bad credit history might not be an easy gamble but there are ways by which you can still avail car loan from specific lenders willing to help you out. However it should be kept in mind that finance companies are extremely strict and rigid in their lending criteria and so you need to provide them reasons good enough to get your application approved. 

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Created on Jun 3rd 2020 02:07. Viewed 204 times.

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