A well laid-out car finance plan can get you behind the wheel of your new car sooner than you expect and without having to shell out too much of your existing funds. But what’s the best way to get approval for a car loan? Read on to learn our top tips for improving your chances of getting approved.
1. Review 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.
Our team of experts will always review your credit report as part of a car loan application. Contact us today and we will provide you with a credit report free of charge.
2. Boost your credit score
The higher your credit score, the better your chances of getting approval for a car loan. If your credit score is below average, take action to improve it. Here are some ideas:
Pay all of your utilities, rent or mortgage bills on time.
Make sure your credit card repayments are paid off on time. This is an excellent way to build up a good credit history.
Zip, Afterpay and payday lenders have a very large negative impact on your credit score because they tell a lender you can’t live within your means. Avoid these to maintain a good credit score.
Reduce debts on existing loans. Accelerate the pace of repaying your current loans. Make small and more frequent payments throughout the month. This signals to creditors that you’re taking control of your debt.
Apply to get any errors in your credit report corrected – they could be dragging down your score.
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
It may be possible to fast track approval for a car loan application by putting down a deposit on your car purchase. Researching how much deposit you need and calculating how much you can afford is always a good idea.
4. Choose your car loan carefully
Make sure you choose a car loan that’s right for you. New or used car? Secured or unsecured loan? Fixed or variable rate? Think about which option works best for you when comparing 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 Solution’s car loan calculator now to get a picture of your car finance.
5. Only work with professional car finance brokers
Did you know the finance manager at a car dealership is the only person in the country that can provide car finance without being licensed?
There are a lot of lenders out there. Choosing 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’ll research and compare different car loan products and find a deal that offers the best value. Plus, they’ll double-check your loan application and make sure all your paperwork is in order. If the lender requires any follow-up information, your car finance broker will handle things, smoothing the way to getting your loan application approved.
Contact us
To learn more about getting an application for a car loan approved in Brisbane, contact our team at Professional Lending Solutions today.
Phil’s journey from banking to mortgage brokering reflects a career driven by a commitment to personalised service and tailored financial solutions. With a distinguished background in banking, including roles at NAB, ANZ and Lloyds TSB Bank in the UK, Phil spent 12 years developing expertise in personal and commercial finance, while also completing a Bachelor of Business (Finance), followed by an MBA majoring in International Business.