Thinking about applying for a car loan, yet uncertain whether you will be approved? If you are new to credit, or you have not had a decent connection with credit in the past, it tends to be nerve-wracking to apply for a new loan. When on the hunt for a new car, your credit score will assume an essential part in the amount you are qualified to borrow (as well as the rate). On-time instalments and routinely paying down card balances will bolster your credit rating; however, different factors play into getting approved for an auto loan.
What can you do to improve your chances of being approved?
Be Reasonable With Your Budget
There are numerous other costs associated with purchasing a vehicle apart from the maintenance and petrol. You may have to pay for stamp duty, car insurance and registration, which all add up. If you do not budget well, it will be a burden. The bank may dismiss your application if your income Can not cover these costs. You can utilize our
car loan calculator to know how much your repayments will be and if you can afford them.
Check Your Credit Report
Before you apply for any credit, regardless of whether that is a car loan, credit card, or a home loan, you ought to always check your credit report first. Why would that be? That is one of the principal things your credit provider will do while assessing your application. Its important to know your credit score and the power this has on your rate and repayments.
Improve Your Credit Score
Terrible credit history is a major warning to many car loan providers in Australia. You should be able to improve your credit score by clearing any outstanding debts against your name and paying off your loans as per the loan schedule. Your goal is to have as little debt as possible, so you can show your bank you can afford the future car loan repayments.
Know Your Car Loan Requirements
Regardless of whether you can afford to buy a new car, if you cannot meet the lender’s requirements, you will most probably be rejected. Understanding the prerequisites, so you know if you qualify for the car loan is important before applying for a loan that could affect your credit score by being declined. Remember that various banks have different requirements.
Save Up For Your Deposit
If you have a big deposit, there is a higher possibility your car loan will be approved. It shows the lender that you are financially responsible as a borrower. Additionally, a higher deposit means lower monthly repayments as the size of the loan is reduced.
So, when you are ready to apply for a
car loan in Australia, contact us for our expert support or any queries you may have. The Australian Motor Industry is well and truly open for business and is catering to all States and Territories. Happy Hunting!