If you have bad credit in the past and you’re now financially stable and looking to get a lender to provide you with a loan, the good news is: many reputable lenders are prepared to give you a second chance. Getting a car loan with past bad credit is possible – provided you tick all the right boxes and provide the lender with good reasons to give you a loan and a second chance.

Many people in this situation submit poor quality applications – often the same poor-quality application repeatedly, hoping that one will eventually be approved. Unfortunately, this approach does not work, and it also damages your credit score as every enquiry you make with a lender drops your credit score. Finance companies tend to be quite rigid in their lending criteria – they′re looking for good reasons to approve your finance application, and its best to leave the application process with a reputable finance broker that specialize in this area.

The following tips can assist you in demonstrating those reasons for a lender to give you a second chance.

1. Honesty
It′s vital to be completely honest in every statement/details you make/provide in your application. If you have a bad credit history, you can rest assured that financiers will investigate your loan application closely. Failing to disclose your previous credit history & failing to give accurate information on your loan application, such as how long you have been at your address, all current liabilities, how long you have been at your current job, whether your full time, casual or part time, only for it to be found by the financier is an immediate red flag and your application for finance will be declined.

Of course, honesty alone is not enough – you need also to be careful you make complete statements in your application. Don′t leave anything relevant out. Withholding information – even information that you believe might damage your application – is a much worse idea to hold back this information than full disclosure.

Auto Link Finance encourages full disclosure as part of our free credit assessment process, this way we can give you a true and accurate outcome of your chances to secure a car loan or loan of any type today, and if you don’t qualify for finance today, we will provide you with general advice on how to repair your current situation and when to re-apply with a better chance to get finance.

2. Your Credit History
Always access your credit file online before applying for a bad credit car loan (accessing your credit file is free and easy). It’s a great way to see exactly where you stand. If there′s an entry or entries you don′t understand, you are free to contact the companies listed on those entries for further information. Also, the more legwork you do in the lead-up to your application, the less legwork is required on the part of the application assessor – the result being your application will be dealt with faster. Being well prepared, up-front and complete in your application helps build confidence in the mind of the financier.

3. Banking Records
Your recent bank records are an essential part of a bad credit car loan application, bank statements for the last 3 months from all bank accounts held in your name are a compulsory requirement from all lenders that look at people with past bad credit. These will be reviewed carefully. It′s essential to prove that you can live within your means and demonstrate that you don’t over draw your account on a regular basis, any existing debts you are paying off are being honoured and there are no bounced or reversed payments in that time frame. Having the capacity to save regularly & showing some sort of savings even if it′s only a small amount each week, can also be a great advantage but not compulsory requirement, it is excellent if you can demonstrate the capacity to save – which, when you think about it, demonstrates that you have some surplus income you can devote to loan repayments after covering your regular living expenses.

If your account gets overdrawn regularly, or if any direct debits are regularly dishonoured because of insufficient funds, this reflects poorly on your ability to meet your current commitments and that alone will cause the lender to decline your application.

4. Loan and credit card history
If you have credit cards, or any other loans, your repayment history with these commitments will be carefully reviewed and must be perfect or very close to perfect for the last 6 months. You need to demonstrate a consistent history of making the payments on time. In the case of a credit card, it′s a good idea to demonstrate you′ve made more than the minimum monthly payment required. A solid recent history with credit will go a long way to ensuring your current application is reviewed very favourably.

5. Employment
A reliable, regular income is essential because you need this to service any future debt the financier may approve. If you have a solid employment history, this will reflect well on your application. Generally, you′ll need to have been employed beyond the probationary period with your current employer. If you′re employed on a casual basis, you′ll need to demonstrate a reasonably long relationship with that employer – say, more than 3 months at least, with consistent employment for the last 12 to 18 months. In general, however 3 months in your current employed is still considered to be fine, having had many different employers in a short span of time doesn′t assist a bad credit car loan application, because finance companies are looking for you to demonstrate a solid, stable income source to service the debt.

 As a part of our free loan assessment here at Auto Link Finance, we go over all these items with you to make sure you tick all the right boxes, so as you can see there is a lot to think about when applying for bad credit car loans, bad credit bike loans, bad credit boat loans or bad credit loans of any type, it is very possible to get a bad credit loan in Australia if you tick all the right boxes.

Call a bad credit Loan Specialist now on 1300 982 279, our service is Australian wide or apply on line today to get a no obligation free loan assessment.

It is always better to be prepared when you apply for a loan and you have had bad credit in the past. Our bad credit check list will help you increase your chances.

1. You must have a steady and reliable income
2. Any and all income sources must go into your bank account
3. You must not have had any credit problems in the last 6 months from the date you apply
4. You must not have more than 2 pay day loans current at the time you apply
5. Any current loans or debts you have, must have a perfect repayment history for the last 6 months from the date you apply

Employment

1.  Casual employment, greater than 3 months with current employer
2.  Part time employment, greater than 3 months with current employer
3.  Full time employment, greater than 3 months with current employer
4.  Agency employment, greater than 6 months with the one agency, with consistent employment in that time

Other income sources we accept on top of the above.

 Centrelink

• Family Part A & B
• Parenting payments
• Disability Pension
• Retired pension
• Self-funded pension
• Disability support pension
• Veterans Pension

Compulsory documents required from you when applying for a bad credit loan.

1. Evidence of all income sources, if employed we would require your last 2 pay slips, if you also get centrelink income then we would need a recent centrelink income statement
2. A transaction listing from all bank accounts held in your name for the last 90 days