5 Ways To Make Sure You Can Get A Good Interest Rate With Bad Credit
It may not always be possible to get the best interest rate with bad credit, but you can improve your chances if you take some of the following steps we put together.
Number 1 – Legal Assistance
Use a specialist legal firm that can advise on credit files and what is listed on there. Quite often defaults are listed on people’s credit files without those companies following the correct procedures. Read more here.
If this can be proven that they haven’t followed the rules to defaulting your credit file, they may be forced to remove this altogether. If you have the defaults removed completely, this can result in you having a clean credit file, meaning a better car loan interest rate.
Number 2 – Professional Advice
Engaging in the services of a professional bad credit car finance broker can be of great assistance in helping you secure the best car loan interest rate for you.
They should have a few lenders and know which ones you will qualify for, and which ones will give you the best interest rates.
A professional broker will also make sure that you are well prepared before applying so your application is presented in the best possible light giving you a greater chance of approval and a better chance of a better interest rate.
Number 3 – Sort The Issues Out On Your Credit File
If you have any defaults that are unpaid, contact the creditors and have them paid prior to applying. If they are in dispute, don’t just hope they will go away and come to a resolution with the creditor. If you can’t you may want to contact the ombudsman in that relevant industry to intervene.
Paid defaults or removed disputed defaults can result in better interest rates.
Number 4 – Income
Your income is very important to any financier, as that is where you will obtain your funds to repay the loan. If your employment is not stable, then the motor financier will also feel that your income is stable.
The least amount of jobs in a two or three year period will reflect better on your car loan application, often resulting in better interest rates.
Number 5 – Previous Loan Conduct
If you have had any previous loans that you either have statements for, or can get loan statements, this can improve your chances of a better interest rate if this loan was conducted without missed payment.
This will show the motor financier that you have been able to demonstrate good previous loan conduct and will give them more comfort in knowing that you have done so in the past.
Jenny Cooper is a bad credit finance consultant currently working and living in Sydney. She loves the outdoors and enjoys classical music. Her favourite thing to do is go out with her girlfriends to see the opera at Sydney’s Opera House.