If you have had some unfortunate circumstances in the past and you feel that no financier will give you a second chance, and if you have demonstrated that you have improved your circumstances, a bad credit car loan could just be the answer to rebuild your credit history.
Who Can Get A Bad Credit Car Loan?
A bad credit car loan provider can help anyone with bad credit if they have shown that they have improved their situation, in some cases even a current undischarged bankrupt.
Improving your situation would mean conducting your personal finances in a satisfactory manner, and the financier will review your bank statements to assess this, so this would mean no direct debit dishonours and your bank accounts never going into a minus amount, unless you have an approved overdraft.
Would The Lender Approve Me Guaranteed?
Unfortunately the lender will not guarantee any approval and the financier will review your circumstances in a different way to most other lenders, as if your options are limited to a bad credit car loan, they still want to ensure you would be comfortable with the additional expense of the loan repayments.
What Is The Criteria?
You would need to be in paid employment and stable in your position. The financier will still require you to have surplus income after your normal expenses and your car loan repayments, and they will also use an assessable living expense calculation, based on your marital status and dependent children.
Your income must be able to verified with pay slips, tax returns and a verbal reference from your employer and you must not currently be a bankrupt. There may be restrictions on the type of vehicle and how it is purchased.
What Documentation Will I Need To Apply?
You will need to complete a loan application and privacy consent and support this with proof of identification and income and you may need a minimum of 3 months bank statements of all accounts in your name and at least 3 months loan statements of any current or recent loans or credit cards outstanding.
What Interest Rates Should I Expect?
The interest rate will be based off the severity of your bad credit. They can still be as low as normal car loan rates, but can be as high as 29.90% p.a. In many cases, this may be a solution to being able to have some checkable credit to get you back into a more negotiable position on the next car loan you apply for.