What are the criteria for a bad credit car loan?

If you’re looking to apply for a bad credit car loan, you might be wondering what criteria you will need to meet with your application. Each lender may have their own separate criteria that they follow when reviewing loan applications, however, there are usually a few items that remain the same. You will usually need to provide details of your employment and identity regardless of your lender so that they can be sure that you will meet your repayments on time.

Read on below to find out more about the criteria for bad credit car loans.

What are the criteria for a car loan?

When applying for a bad credit car loan, you may find that lenders often have different criteria’s. Generally, though, you may need to provide details about the car you’re buying, proof of your identity and details of your ability to make loan repayments. Usually, this will mean that you will need to provide proof of your income assets, and of other loans or credit cards. In the case of applying for a bad credit car loan, you might find that you don’t need to supply as many documents as you would for a regular car loan.

When it comes to submitting a loan application, your lender will generally consider a whole range of criteria. Your lender could need to see proof of:

Credit history – Most lenders will check both your credit record and credit score to understand your financial history. A lender may check for any previous loans you have defaulted on, or any missed payments you have listed.

Loan amount – When deciding whether or not to approve your application, how much you are asking to borrow may sway your lender’s decision. If you are seeking a lower loan amount, you may be more likely to be approved, even you have an impaired credit history.

Your income – In most loan applications, you will be asked to provide details of your income. This is so your lender can understand how much you can afford to repay, and how often you can afford to repay it. If you are submitting a joint application with a spouse, your lender will usually ask for the combined income of both applicants.
Overall expenses – Your lender will usually need to know the details of your other expenses, such as rent and utilities, as part of your application.
Debts – If you have debts such as other loans or credit cards, your lender will generally need to know about them.

Each lender may have a different criteria checklist that they follow, so it may be worth checking what your lender will need before you apply.

What do I need to apply for a bad credit car loan?

When it comes to actually applying, the application process for a bad credit car loan is similar to a secured car loan. Generally, you may still need to supply all documentation as you normally would when applying for any other loan. If you choose to apply for a low doc car loan, you might find that you need to supply less. However, your lender may need to see:

Proof of identity – Proof of identity would usually be a drivers licence or a pass[port in your name
Proof of income — You could use copies of your tax return or your recent payslips to prove your income for your loan

Proof of your assets — Your lender may ask to see proof of any shares, vehicles, or property that is in your name
Details of any current debts — Your lender will want to know about any other loans in your name, as well as any credit cards and their repayments. They may also wish to know about expenses such as rent.
Details of any defaults – If you have defaults listed on your credit file, your lender will generally want to know the details of them

Where does Tiger Finance come in?

We have helped countless Australians with both good and bad credit ratings to be funded for their dream car. The lending criteria from other lenders can be unfairly strict when you have bad credit, and it can hold you back.

When you call us, you will have a free consultation with one of our specialists, and we will tailor-make you a loan. We will negotiate with lenders on your behalf before you are approved. You won’t find an easier way to get approved for a car loan.

How we can help

Our loan experts can make the entire process simple and pain-free. We can find you the right loan quickly and easily. If you’re ready to drive away in your new car, call us today for your free initial consultation with one of our loan specialists.