The online CarPow application form is a start but not ALL of the process as you will see shortly. Unfortunately every month we have hundreds of applicants who start the process but continue no further. Many expect their name and address to be enough to decide the outcome of their case but no it does require a touch more involvement.

The term responsible lending can apply to any type of financial service, but most certainly bad credit car loans. The decision making process involved in approval or decline and its certainly relevant when it comes to vehicle loans.

A finance company has certain obligations in regards to allowing a customer to accrue a liability in the form of loan debt. The main focus of this is to ensure they act responsibly in granting car loan approval and carry out a certain level of investigation before doing this. This is why we require 3 full months of bank statements for all parties to a car loan as it literally shows everything being purchased or paid for – for 90 days. A lender will analyse to work out how much is being spent against how much is coming in. If the lender cannot clearly demonstrate that the new car loan wont put the customer into financial hardship – the loan cant be approved.

This usually means that before the new repayments are taken into account a person should have approx. $1000 left over.

A final part of the Bad Credit Car Loan application process is the credit check and popular opinion is that this is the most important aspect. This is not correct. A credit check mostly determines the level of risk involved to the lender as shows what has occurred on previous financial products taken out. If a customer has clearly demonstrated they can afford the loan – a credit check is secondary in the approval process.

This is why those with bad credit can secure a second chance with car loans for bad credit.

Nothing is unworkable apart from existing bankruptcy – as those who are bankrupt are forbidden from taking out new finance. Also very recent Bad Credit of car repossessions or loan defaults would need a strong explanation as to why they occurred as it does indicate an applicant is having difficulty with financial hardship.

As we have discovered financial hardship makes approving a new loan facility very hard as should this new loan default once more and is taken to court for recovery of the outstanding balance a judge will ask why it was approved.

The age of your credit file will also play a part in the strength of your application – especially if you are looking for a bad credit car loan. If it has only been active for a short time frame this is ok if you are young but suspicious if not. Questions could be asked about possible name changes or periods living overseas.

Absolutely! We understand that bad credit can be a challenge when it comes to securing financing, but we have helped many customers with less-than-perfect credit obtain car loans. We wouldn’t offer this service if we didn’t believe we could help, and we are committed to finding solutions that work for our customers. Our team of experts will work with you to find the best loan options available, regardless of your credit history.