We’ve all been there! You want to get a new car but you don’t know if you can apply for a car loan with bad credit. Relax! It’s not the end of the world and you CAN get your next bad credit car loan approved.
Maybe your family deserves a safe way to get from A to B. Or you were late for work because your old junker broke down. Whatever the reason you need a new car and Hoolu can help. Read this article to avoid having to catch the bus!
But I’ve Been Declined In The Past?!
Bad credit is something like water. You CAN change the direction it flows!
Getting approved for your next used car loan doesn’t have to be a stressful or difficult experience. Trust us – we know! Bad Credit 24 Hour Car Loans are our specialty. We work with all kinds of credit scores to match our customers with the best loan from 35+ lenders.
DO THESE THINGS Before You Apply For A Bad Credit Car Loan
Start by organising all the information/documents you’ll need – identification, payslips, bank statements, details of credit cards, loans, mortgage, and references. Once you have all this stuff ready to go you’ll be able to quickly apply without having to look for something that’s missing.
Then you want to select the right finance broker or lender. Every finance broker and lender has different eligibility criteria. Don’t worry about matching with them all. Just be selective with where you apply to. Choose someone like us – Hoolu – we specialise in matching people with bad credit with the best loans possible!
The magic of computers makes applying for a bad credit loan online the most convenient choice. Take Hoolu for example – our online application is super easy and changes to suit your answers, making it as fast as possible! Why complicate your loan application any more than it needs to be?
Don’t Be Tempted To Bend the Truth
Be honest about what your financial situation is when you apply for a bad credit loan. Your credit score and credit file will be assessed during a standard credit check. But that’s OK! People with bad credit must not fear being held back – your past credit history is only one part of getting a loan and your current financial status is much more important.
Being honest on your loan application means we have more information about what kind of finance option suits you. It’s no good being matched with an expensive loan that’s out of your budget. You also don’t want to get a higher interest rate than you otherwise might receive.
Remember, the bottom line with a loan application is that you need to look like you’re a good candidate for a loan. Your credit rating will be assessed in line with the specific lender’s eligibility criteria and in relation to the loan amount you have applied for.
By looking like you can repay your loan the level of risk involved with lending to you appears to be lower. A lower level of perceived risk generally means a lower interest rate and a lower overall cost for the loan.
Take These Steps To Improve Your Credit History
We explain the best ways to improve your bad credit in this article – click here to read it. But we’ll give you a brief run down now. Some of them you might already be doing!
1. Avoid keeping a large credit card balance. While it’s tempting to throw some purchases on the plastic and worry about it later credit card debt quickly adds up.
2. Pay out your credit card balances – depending on the type of card you have you should be paying your credit card debt off as soon as possible. This makes it look like you can handle your debts and meet your borrowing commitments. It will also cost you less interest which means more money in your pocket.
3. Leave old debt on your report – if you have paid out your old debts then this is a good sign! The main thing lenders are concerned with is whether you can make your loan repayments.
4. Use your calendar – mark in your payment dates. Or set up automatic transfers through your online banking.
5. Pay bills on time – make sure all your payments are on time. Whether this is for a loan, credit card, a phone bill or a utility bill. Meeting your loan repayments is a vital part of maintaining a good credit score. Making your payments on time also makes you look trustworthy and less risky to lend to.
6. Consider the timing of your application relative to your credit history and employment history. Do you have a steady income and a constant address? If you’re about to go on a holiday, have a career change, are between permanent addresses, or will be out of work, you may have difficulty getting and maintaining a loan.
Basically – you want to make yourself appear to be a trustworthy candidate for a loan by acting like one.
Avoid These Financial Mistakes That Lower Your Credit Score!
Here are three key things you need to avoid in your bad credit history before you apply for a bad credit car loan –
1. Avoid “Buy Now, Pay Later” payment options – these have become a trend recently and they are putting a lot of people in financial difficulty. These payment options are no better than a credit card. But they can also be worse as they are automatically deducted from your account at the same time on certain days. This means we often see people defaulting on their payments for multiple purchases on the same day.
2. Avoid payday loans, small loans and quick cash loans – easy personal loans can give the impression that you can’t manage your finances and often need money to get you out of sticky situations. If you look like you can’t manage your finances then the assumption is that you won’t be able to pay off your loan. They can be very tempting and convenient with fast online application forms and even automatic loan approval. But they can put you in a financially difficult situation and make things worse in the long run by negatively affecting your credit score.
3. Don’t make too many loan applications – these are all visible on our credit file. The more you apply and try to get approved, the more it can look like you have history of being declined. You should aim to have a good enough financial situation to be approved every time you apply.
Don’t Forget To Check The Loan Terms!
Check the terms and conditions of your loan before you accept a secured car loan. Car financing should be a beneficial thing after all! But as with any financial decision you need to be informed.
You should be told your interest fixed rate before you agree to your loan as well as what your repayments will be. It does not have to be a high interest rate. It should relate to your unique bad credit rating.
Be sure you can afford the loan amount and try to only borrow the minimum you need. Make sure that you can also afford the regular repayments and factor these into your weekly budget.
Always sure to check your options before you borrow. Working with an expert finance broker like Hoolu means you get access to many different finance options that suit your credit file.
How Long Do I need to Wait Before My Used Car Finance approval?
Every loan takes a different amount of time to process, usually 1-2 business days. But we can often get our customers approved in the same day they apply.
You can even drive the car home the same day if you purchase from our of our trusted dealership partners. How do we do it? With our 24 Hour Used Car Finance – Apply now or get in touch to get the ball rolling – click here.
Making Your Borrowing Experience Easy!
Applying for a bad credit car loan yourself can take a lot of time and stress. We can share our expertise with you by making the entire process as simple and painless as possible.
Hoolu is happy to work with you to get your bad credit loan approved! Get in touch with us today – click here to visit our contact page.
Check Out Our Guide to Getting Cheap Car Finance!
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