Car Finance Gold Coast – 5 helpful Tips To get Approved
You’ve found your Dream Car that you would like to own – Congratulations! The next step or most Gold Coaster’s is to find a car finance Gold Coast broker to help you purchase it but you’re not too sure if you will get approved.
You’re not alone as most Australian’s are unsure of the process that lenders go through to assess their application to get approval for Car Finance
What is the process to apply for Car Finance?
When applying for car finance you will have to fill out an application form or disclose to a broker where you’ve lived in the last 3 years. You will also need to tell them where you’ve worked in the last 3 years, your current income after tax and what your expenses are like food, utilities, mobile phone etc and you’ll need to inform them of your current loan payments are if you have any loans upon application.
You will then need to sign a Privacy form which allows your Broker to talk to the car finance Gold Coast lenders on your behalf.
Plus you’ll need to provide in most cases 2 payslips from the last 5 weeks and a copy of your driver’s licence front and back. If you don’t have pay slips, that’s fine. Instead, you may submit at least 3 to 6 months-worth of bank statements. You have to closely coordinate with your broker regarding this.
With all this information on hand, an experience Car Finance Broker can indicate if a lender will consider your application. BUT before you do apply, here are 5 Smart Tips to help you get Approved for Car Finance on the Gold Coast!
Know your credit rating!
A credit score is a number that is calculated based on the information on your credit report. It helps car finance Gold Coast lenders know how responsible you are to lend to. Do you pay your bills on time? Do you pay in full or only partial of what you need to settle? Your credit score is a number between 0 and 1200 — higher the number the more likely you are going to get approved.
Your score is calculated from current situations and past behaviours including credit limits, your repayment history, and overdue debts. How often you’ve asked for credit and the kinds of loans or credit you’ve applied for, the frequency of your credit applications, and several other factors are also included in the calculation of your credit rating.
Determine your budget before applications are submitted.
Working out a weekly, fortnightly or monthly budget that you can afford to pay not only today but into the future will help keep you on top of your car finance repayment. Knowing the amount you can afford to pay will help you manage your finances well.
Before making a huge purchase like that of a car, it is best to know where the budget for its payment will come from. When working out your budget factor in any future increase of costs of living or unpaid holidays you might take down the track.
You can use our FREE loan calculator http://www.approvalbuddy.com.au/loan-calculator/ to help you determine the repayment amount you can afford and how long the loan term will be. In most cases the loan term is not fixed so you can pay extra repayments to shorten the term of the loan and pay it off quicker. But you might have some early exit fees or break costs to pay for as well. In most cases, these costs will outweigh the interest you will save from finishing your car finance early!
Compare Car Finance Gold Coast quotes.
While searching for car finance on the Gold Coast, get as much information as you can, but don’t apply with too many credit providers that do up front credit checks. These checks will be marked on your credit file which in turn can lower your credit score. It will show the number of times you have applied and have failed to make the cut for the loan to be approved,this could be very bad for your credit history.
Here at Approvalbuddy, we don’t do credit checks until after we’ve run through your application with you and know that we can help you get approved on your selected car on the Gold Coast. We value your current and future credit score; thus, we make sure that we only check on your credit rating when we see that you can really help. If during the initial interview and investigation, we feel that the answers might not be positive, we give you advice on what can be done instead. In that way, your credit score won’t be affected.
Put a deposit down.
A deposit is not a must but can help you get approved on your dream car. It reduces the risk to the car finance lender to lend you money. Whenever you apply for car financing, the lender will look into your credit history, the payments you paid and those that you missed. Potential lenders also review the outstanding balances that you have with other lenders as these could help them decide whether you are a good borrower or not.
Lending you the money is an investment for the lender, that’s why they want to make sure that you can really afford to pay them today and in the future. A deposit can be made up of two ways, cash deposit or a trade in. Here at AprovalBuddy, 95% of the car finance we do on the Gold Coast is no deposit car finance.
However, if you wish to make a deposit to lessen the amount of the loan, that can also be done. Our team will help you calculate on the cost of the car with the financing minus the deposit. Paying the deposit up front can really pull down the overall cost of the car.
Avoid Payday loans
Have you ever been offered a payday loan?
Although these offers of loans can really be tempting, it is important that you take a step back and think about what you are getting yourself into. They are promoted as smart small loans but the car finance lenders & banks think otherwise. Some car finance lenders & banks won’t consider your application if you have one payday loan currently active upon application.
More so if you apply for the car finance and you have an outstanding number of payday loans. Such small loans make you look like you are spending more than you can afford and that’s bad for your credit rating. These lenders will enquire into your credit file, they will see how many payday loans you have and how much you need to pay off. It is best to avoid payday loans if you can.
When it comes to car finance Gold Coast, you have to keep these smart tips in mind to help you calculate on costs and whether or not you will get approved but if you have any questions please feel free to contact the team on 1300 728 504 or email firstname.lastname@example.org we are always here to help YOU !