It is possible to secure a bad credit car loan – if your application meets important approval criteria. Here are five tips that will boost your chances of success.

INTEGRITY

It’s vital that you are honest and complete in the information you provide in your application. Kyle Rhys from www.badcreditcarloan.com.au says honesty and integrity underpin every successful loan application. “People often feel ashamed about their credit history, especially if it’s a poor one,” he says. “However, reputable lenders realize many people experience financial ups and downs. It’s understandable that people sometimes embellish the truth to make themselves appear better in their applications for finance, but doing this is always a bad idea. Scrutiny is always high – and discrepancies between any claims you make in your application and what your financial records reveal will erode any trust the lender needs to develop in you, to approve your application.

SAVINGS

Regular savings, even if they are only a small amount each week, demonstrate that you have spare income capacity required to service additional debt. Your bank records should demonstrate your ability to save, and also that you can manage your money responsibly. Don’t allow your account to get overdrawn.

CREDIT FILE

You should inspect your credit file, which will be reviewed by prospective lenders during the application process. Make sure you identify any entries on your file, which you believe to be in error. Contact the companies and see if it’s possible to resolve those issues – before you apply. For information on accessing your credit file find a free service online by search google “free credit report check”.

EMPLOYMENT

Lenders require employment stability because they know an uninterrupted income is essential to servicing the debt responsibly. Ideally you would have a long period of continuous employment with few different employers. More than 12 months with the current employer will be received well, in the case of casual employees. For full- and part-timers, being employed beyond the probationary period with your current employer will often be a prerequisite.

EXISTING LOANS

You need to show that you are currently responsible with debts and a key way of doing this is to provide records, in the form of statements, that show you are making the payments on any current loans and credit cards. Payments must be on time, with no defaults, and in the case of credit cards it is a great idea to make more than the minimum monthly repayment.