Car Finance Approval Tips

Car Finance Approval Tips

Tips to Get Car Loan Approval

Are you worried about getting car loan approval? If so, you’re not alone! According to one survey, 54% of people said they found buying a car to be more or just as stressful as planning a wedding (and 37% said it was as stressful as being trapped in an elevator!). Fortunately, it doesn’t have to be that bad! There are some simple car loan approval strategies that you can use to make obtaining a car loan easier and far less stressful. In this article, we’ll look at some effective car finance approval tips that will have you driving off into the sunset in no time.

Car Finance Approval Tips That Actually Work!

Improving your car finance approval could get you behind the wheel of your new car sooner than you expected. However, not all financial advice is created equal. So, don’t settle for tips from the finance guy at your local car dealership. Instead, look for car finance approval tips from an experienced car loan broker. Personally, the team at PLS have found the following tips for car loan approval can go a long way towards improving your chances:

1. Review your credit report

If the goal is improving your car finance approval odds, then start by checking your credit report. Your credit report holds vital information about your financial situation. It contains your credit history – the good and the bad – and this information is used to generate your credit score. Lenders will look at your credit report and credit score to decide whether to approve your car loan. You should always check your credit report before applying for car finance. The easiest way to check your credit score? Contact us today and we’ll provide you with a credit report free of charge.

2. Boost your credit score to get approved for car finance

The higher your credit score, the better your chances of getting approved for car finance. If your credit score is below average, then don’t worry! You can improve it by:

  • Paying your bills on time: Make sure that you’re consistently paying all of your utilities and rent or mortgage bills on time.
  • Paying off your credit cards each month: Making sure your credit card repayments are paid off on time is an excellent way to build up a good credit history. 
  • Avoiding mini loans: A lot of people are shocked to discover just how bad Zip, Afterpay and payday loans (where you borrow a small amount of cash to tide you over in the short term) are for your credit score. Lenders view these kinds of mini loans as giant red flags because they tell a lender you’re not living within your means.
  •  Reducing debts on existing loans: Accelerate the pace at which you’re repaying your current loans. Try making small but more frequent payments throughout the month. This signals to creditors that you’re taking control of your debt.
  • Fixing any errors: Sometimes your credit report will show something incorrect. If you notice any errors, then apply to get them fixed ASAP – they could be ruining your chances of getting approved for car finance.
  • Limit your applications for credit and loans: Every time you apply for credit, it’s flagged on your credit report. The more applications you make in a short period of time, the more red flags you may have.

3. Consider making a deposit

making a deposit for faster car loan approval

Putting down a deposit is a fast and effective way of improving your car finance approval chances. If you’re interested in using a deposit as part of your car loan approval strategy then get in touch with the car loan brokers at PLS – we can research what kind of a deposit you’ll need and help you calculate how much you can afford to pay upfront.

4. Choose your car loan carefully

One of the most frequently overlooked tips for car loan approval is making sure you choose a car loan that’s right for you. Car finance deals are not all created equal. Are you planning to buy a new or used car? Do you want a secured or unsecured loan? A fixed or variable rate? It’s important to consider which option works best for you when comparing all of the available car finance deals. If you’re not sure, a reputable car finance broker can steer you in the right direction and improve your prospects of getting your application approved. You can use Professional Lending Solutions’ car loan calculator now to get a picture of your car finance.

5. Discuss car loan approval strategies with professional car finance brokers

Did you know the finance manager at a car dealership is the only person in the country who can legally provide car finance without being licensed? Is that really the person you want to go to for financial advice? There are a lot of lenders out there. Choosing the one that best suits your current needs is not an easy task. A car finance broker can save you a lot of time, money and stress by matching you with the lender that fits your profile. They can provide effective car finance approval tips and help you implement the ones that will be most beneficial for you.

Car Finance Approval Tips: Use A PLS Car Finance Broker

A PLS car loan broker can help take the anxiety out of buying a car. We’ll start by doing thorough research and then compare car loan products from a wide range of lenders to find which deal offers the best value for your circumstances. Plus, we’ll double-check your loan application and make sure all your paperwork is in order (before it gets sent off to the lender). If the lender requires any follow-up information, we’ll handle that too. Essentially, we’ll smooth out the speedbumps and make it easier for you to get approved for car finance.

Contact PLS for More Car Loan Approval Strategies

For more car finance approval tips, contact the Professional Lending Solutions team of car loan brokers today. We’ll answer your questions, offer some friendly advice and help you get your car loan application sorted…without the stress.