Following the credit crisis and tight lending situations, it’s quite complicated to secure car financing. What was one time a fairly quick and simple process has nowadays become more difficult, particularly if you’re looking for guaranteed funding. This is where the lender requires several details in relation to your financial position prior to them agreeing to offer you car finance.
Given that it is common that at one point in your life you might have struggled money-wise; this can regularly have an effect on your credit history since many lending companies can pass on your particulars to a credit bureau which can have an effect on your record. You ought to be conscious that this could harmfully affect your position while approaching a prospective car finance provider.
Therefore before you ask for guaranteed car finance, ensure that you follow these tips to make sure that your application gets the best likelihood of being successful.
Get a car finance credit report
The company you’re borrowing from will almost certainly verify your credit score and base their verdict on it. Ensure you get a duplicate of your credit report before visiting the company. You can acquire a duplicate of your credit statement online these days. So even though you have had skipped disbursements on a mortgage or credit card some time back and forgotten regarding it, it could be a black spot on your car finance credit record.
To avoid this contact the earlier lender and request them directly to modify the submission they’ve made to the credit bureau, or find a professional company to do it. This might sound like lots of work however ultimately it could save you a lot of money in reduced interest fees.
Get novated lease statements
Ensure you have a duplicate of your novated lease statement for the past six months to show to potential lenders. They’ll be looking to make out if you’ve been charged additional interest charges or if you’ve had overdrafts at any time. In addition they’ll be looking at what time your income is paid and how long it lasts you prior to you spending it. Your prospective lender will want to ensure that you cover the funds to pay off the cash you are borrowing. If the deals through your bank do not raise any eyebrows in that case this will be a major advantage towards your objective of getting guaranteed car finance for the car you desire.
Have a job
Having stable employment with an excellent wage will as well assist you in receiving guaranteed car finance. Finance firms will view you positively if you’ve been in your existing employment for over 1-2 years. They might also judge your work history for the last couple of years. This will confirm to them how long every period of your service has been and how possible it’s that it will stay stable, since after all you might have trouble paying back the outstanding funding that you have obtained if you aren’t employed, hence the credit company will need to check first.
To sum up because every persons circumstances is different you actually need to go to a finance company and observe what they need before distressing too much. Your core focus ought to be on the car you need, and then confirm how you can make use of your car finance to get it successfully.