Bad Credit Car Finance – Why Use A Finance Broker?
Having bad credit even as little as a telephone bill default can seriously hinder your chances of getting a loan for your next car, truck, boat etc. The primary reason is that all established banks and finance companies use a computerised application that includes a credit reference bureau check. (e.g. Veda Advantage, Dunn & Bradstreet) On the system seeing you have a default is usually automatically declines the application.
If you have applied directly to the bank or finance company you have no options left. The financier employee you are talking to would rather say no than give you a chance, as they will have a big problem with their employer if the loan goes wrong.
This is where a finance broker can make a difference. I need to stress, an experienced broker with bad credit experience is a must.
Many finance brokers today, particularly on line brokers are very similar to banks and finance companies. They are big with many inexperienced staff, if the computer says no when they submit your application the broker says no.
Brokers who specialise in bad credit loans offer you a real chance of getting a loan. Their systems are set up to give you the best chance of success. You can quite easily pick a bad credit suited broker, he’s the one asking you a lot more questions and asking you for a lot more paperwork.
So what is the broker who’s asking all these questions actually doing?
The first thing the broker needs to do is find the real truth. He needs to get all of your details as correct as possible. He will then match your answers to your credit file and probably your bank statements, to ensure that any prospective lender gets the right story.
Most bad credit car loans fail at this point. A lazy broker who doesn’t ensure information is correct puts your application at extreme risk. Remember you already have credit problems, if the lender thinks you are not telling the truth your application will fail.
Secondly a good broker who has collected the right information will know where to place your application to give you the best chance of success. He has two goals. One to get you approved, but also to get your loan approved that meets your needs. (e.g. no deposit or a five year term to keep your payments lower)
In summary, find an experienced finance broker, be prepared to answer questions and provide supporting paperwork including bank statements to assist in getting the truth about you. Armed with this a good broker will find the best opportunity to get your loan approved. It’s a computerised age. Bad credit problems are overcome by negotiation with the financier. Only a good finance broker can help with this.