Having a bad credit record or if you are bankrupted, can make you think your ability to obtain any loan will be a different or impossible task - especially with a car loan. But it doesn't have to be this way. Any new loans, including a car loan, can help you reestablish and build your credit and your credit history as well.
If you are in the middle of bankruptcy, car finance companies will not deal with you. However, they will when everything is finalized because then you can legally reestablish yourself and take on dept. Bad credit doesn't mean you have no credit. You can still acquire a nice car loan and you can even get a reasonable rate and payment terms.
Here are some tips to help you get the best deals and terms regardless of your own credit history:
Acquire a Copy of Your Credit Report
This is an important step because the credit report can and probably contains some derogatory and erroneous information. It is true that about 90% of this type of report contain some errors or incorrect info. This can contain wrong loan info or contact info, and even derogatory debt info that should be taken out because it is more than 7 years.
The rule is; most debt reporting and derogatory credit can only stay on your report for only 7 year, while bankruptcy is up to 10 years only. There are a lot of collection companies and creditors that abuse this law by listing bad credit with unusual loan numbers. This is illegal and a violation for Fair Debt Reporting Act. So if you find any falsified reports, take legal actions.
Make Friends with the Person Who Handles Bad Credit
These type of people can put in a good word for you or perhaps a recommendation. This is especially if they are working at a large dealership and they process a lot of loans. Then have the ability to throw it in with a package of loans and help you get approved or get you better rates. Do not disregard this tip as this can be very handy - and it happens in real life!
The finance person will also determine the payment method that will work for you and how much money you can put down. If you are good friends with this type of person, then you have a chance of getting a good deal, a great car and awesome payment methods.
Do A Little Research before Signing Anything
There are tons of finance companies and even websites that offer competitive terms and rates, but you'll never know if you do not do your homework. You can look them up on Google to find them. Compare their rates and see the kinds of terms you can get.
Buy Here, Pay Here
If you wish to purchase a vehicle that is older than the range that companies will finance (under $ 5,000), or perhaps your credit won't let you purchase at a normal dealership, which is very rare, then these is a last resort, that is the Buy Here Pay Here deal.
The car dealers finance the car and usually, they expect weekly payment terms. Do not expect that the loan will be reported on your credit report, so this will not help improve your credit. If you miss a payment, they will tow the vehicle. Then this will require you to pay for towing fees and other payments to get it updated in order to have the car back.
Aussie Loans is 100% Australian owned and we have been operating since March 2000. We currently have eight offices conveniently located in Queensland,New South Wales and Victoria. We are looking to expand Australia wide in the very near future.
Our experienced staff are committed to providing fast friendly service, helpful advice, flexible options and great deals.
We have direct links with over 20 major Australian Financial products which means we can tailor a loan facility that best suits your needs.
We are here for you and we wish to build a long lasting relationship with you. If it's a personal, used car finance , business loan, whether it's a Motorbike, Car or Boat you need, we are able to cater to your needs.