STEPS TO OBTAINING A BAD CREDIT CAR LOAN

Instructions

Increasing your chances.

The more of the following list that you have the higher your chances of getting a bad credit or last chance loan.

• Job
• Bank Account
• Drivers License
• 2 References
• Phone Bill
• Electric Bill
• Deposit or Down Payment
• Guarantor or Co Borrower (possibly)
• Car Insurance

Step 1

The first step in getting a car loan with bad credit is to be realistic.
Many car shoppers get frustrated when trying to find a car with bad credit because expectations are set too high with respect to how much money a lender will lend them.

Also, keep in mind that when buying a car with bad or poor credit that some dealerships will finance the vehicle for you.

Step 2

Seek out a finance broker or lender that specialises in bad credit poor credit financing. www.waf.com.au andwww.yesloans.com.au
The banks and lenders these dealerships work with are better prepared to help poor credit - bad credit car buyers.
They may also be more flexible with regard to deposit or down payment requirements than traditional banks.

Usually you can expect to pay a higher interest rate for a bad credit car loan than a shopper with great credit. 
On the plus side the rates are not much higher than an unsecured loan with the bank.
Two sites you can visit with a large lender network is www.waf.com.au and www.yesloans.com.au 

Step 3

Once you've located a broker you want to work with they will ask you to bring in copies of a pay slip, drivers license, a phone bill, power bill, or other bill that validates employment and your residential address.

In addition to these items you'll need copies of a bank statement, car insurance, and personal references.

Step 4

Once you bring all the required information to the finance broker and the broker tells you how much you can borrow, start looking at some cars.
The finance broker will want to talk with you and put together the explanation for the bad credit and the reason why it will not happen again. Be up front with the amount of down payment you can really afford.

Once the lender and dealer determine your lending level you can finalise or narrow down your car choices and interest rate.

Step 5

After 12 months of on time payments this will give you an “A” rating with the finance company that provided your loan.
This will also allow you to start establishing or rebuilding your credit.
This may enable your loan to be refinanced at a cheaper rate with a mainstream lender.

Step 6

Be realistic with your expectations and do not take on a repayment that is more than you can handle.
This is your chance to show that you can pay on time. 
Additionally, if you have bad credit or poor credit, the last thing you need is another debt or payment you cannot handle.