Car Loans with Bad Credit in Australia

Establishing a budget and being able to demonstrate a consistent pattern of saving can be crucial for just about any loan. Your credit score isn’t necessarily indicative of your financial habits, and it’s great to be able to demonstrate that to a lender.

The amount of debt you have dictates how much you can borrow — but did you know that debt isn’t necessarily cleared off your credit report as soon as you’ve finished repaying it? Check your credit report before applying for a loan — you’re entitled to a certain amount of “free” checks each year — to ensure that you don’t have any debt that’s long dealt with preventing you from borrowing more.

Once you’ve secured the loan you need to finance a car with poor credit, it’s critical to make regular and timely repayments to the lender, in accordance with the loan agreement. This isn’t just about paying off the loan efficiently; it’s also about building or rebuilding your credit score by demonstrating that you can stick to a schedule and be a trustworthy borrower in the future.

Browsing through different loans before coming to a final decision can be a good and normal thing to do when you’re seeking finance. But a common mistake people make is applying for multiple loans, then selecting the one they really want when they’ve been approved. This can actually have a detrimental effect on your credit score overall — so make sure you discuss T&Cs thoroughly and ask any relevant questions before making your decision about which loan to apply for.