How Do You Get Your Car Financed Approved with Bad Credit History

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http://www.platinumdirect.com.au/

How Do You Get Your Car Financed Approved with Bad Credit History

If you have a bad credit history, it’s going to be a bit more difficult for you to qualify for car financing. It is difficult, but far from impossible. With a little planning, you can still get financing through bad credit car loans. There are a few things you can do to improve your chances of getting approved in this market.

Save Up for a Larger Down Payment

Can you wait a few more months to buy your car and save up some more money? One of the best ways to increase your charges of getting car financing is by making a larger down payment. This helps in two ways.

First of all, it means you have to borrow less money so creditors will be taking on less risk by giving you a loan. Second, it shows that you are acting more responsible with your money. Lenders will notice this change of behaviour and it will help balance out your bad credit history.

Find a Co-signer

If you’re struggling to find a good car loan by yourself, maybe a close friend or family member can help. This person can co-sign your loan, meaning he is backing up your car loan with his own credit history. Your lender will base your loan terms on both your credit histories so this will definitely qualify you for a better rate. Just be sure to make your payments on time so you don’t damage the other person’s credit history along with your own.

Accept a Higher Interest Rate

Your credit history reflects your risk as a borrower. People with poor credit are more likely to miss payment on their car financing. To make up for this larger risk, creditors charge a higher interest rate on bad credit loans.

Chances are, you’ll be able to find some sort of bad credit loan, but you’ll need to pay more per month for your loan than someone with good credit. This might mean you will have to buy a less expensive car to afford the higher interest payments. However, if you make all your payments on time for this loan, your score will improve and put you in better shape for your next car loan.

The Number 1 Car Finance Australia Tip: Work through a Qualified Loan Broker

When you have excellent credit history, finding a good loan isn’t too hard; most of your options will be good and simple. When you have bad credit history, it’s quite a bit more complicated. You’ll see a huge range of contract types, interest rates, and loan amounts.

To sort through this mess, you need help. You can get this help from Platinum Direct, a qualified loan broker that understands bad credit car loans. We will match you up with your best financing option and make sure you get the loan you deserve, despite your credit history.

Don’t let a bad credit history get in the way of your dream car. Contact Platinum Direct bad credit loans to get a bad credit car loan and you will be on the road in no time.