There is no doubt how exciting getting a new vehicle can be. Just imagine the feel of new leather seats and inhaling the fresh car scent inside your sleek ride as you go around Brisbane. Or think about enjoying the relaxing scenes over the city as you drive towards work in a beautiful car. The experience is something to look forward to.
However, the excitement also comes with anxiety, especially regarding bad credit car loans in Brisbane. But don’t worry about second thoughts and your decision to get a new vehicle. Many finance companies offer car loans even with a bad credit history, making your dream of a car upgrade possible.
But before you go looking for the car of your dreams, learn the reasons why car loan applications are rejected in Brisbane.
Poor Credit Standing
Firstly, a financial institution in Brisbane or elsewhere will check your credit history when you apply for a car loan. An excellent score of 800 and above will most certainly get approval. The same goes for a perfect score of 700-799.
Unfortunately, Australians with credit scores below 600, even while considered good, will most probably be denied a loan. So, check your credit standing before going to a bank.
Insufficient or Unstable Income
Your income can tell lenders in Brisbane how much you can repay if they grant you a loan, which is an essential basis of your car loan approval.
You can quickly get approved if your income is stable and your payment capacity is higher than your loan amount. However, if your employment is unstable and your income is inadequate, chances are your application will be rejected.
High Credit Utilization Ratio
Your credit utilization rate or ratio is the amount of credit you’re using compared to what you have available. It is in percentage form and is described as the amount you owe divided by your credit limit.
So, when you have a high credit utilization ratio, it means you are maxing out your credit limit. This lessens your chances of getting approved for a car loan in Brisbane or other cities in Australia.
One rule that banks have for processing loan applications is complete paperwork. When you lack the required documents, you will be dismissed. However, today, many financial institutions in the Land Down Under are not as strict regarding paperwork.
Therefore, as long as you provide the most important documents, your car loan will still be approved.
You will automatically be checked for current loans when applying for a car loan in Brisbane. You will be denied if you have an existing loan, and your financial status will unlikely cover another loan.
You can have a better chance at car loan approval if you pay off your current debt before applying for a new loan.
It can be depressing when your application for a car loan in Brisbane or beyond gets denied. However, a single mistake can cost you your chance of getting a new ride, no matter how careful you are with your credit score.
Thankfully, bad credit car loans in Brisbane can happen. However, with the help of compassionate lenders, you can get a second chance at a car loan and even have a flexible payment solution to your financial problems.
So, make your dream car a reality and go on a ride all across beautiful Brisbane now. Find the best financial company that can look past your bad credit history and offer you a loan you can’t deny.