Bad Credit Car Loan Requirements

By Angela Monroe - March 27, 2018

Applying for a bad credit car loan is fairly straightforward. All you need to do is to submit a few documents along with your loan application form, and it will be processed.

Today, we’ll take a closer look at the paperwork you need when you apply for a bad credit car loan. Before you apply for a bad credit loan, make sure to arrange all the paperwork you need.

You should also consider taking the help of professional car finance consultants. Professional consultants such as Loans for People with Bad Credit will walk you through the process of getting a bad credit car loan and will help you with the documentation you need to provide with your loan application.

Paperwork required for bad credit car loans

Banks and lenders look at a few specific things before approving a bad credit car loan. These include your credit history, your current financial situation and your repayment capacity. When you apply for bad credit car loans, lenders will ask you to provide some specific documents for these.

When it comes to bad credit car loan requirements, lenders may ask you to provide several documents. These include the following:

1. Driver’s Licence

This is a requirement for all car loan applicants. Regardless of whether you’re applying for a standard car loan or bad credit car loan, lenders will ask you to provide a copy of your driver’s license along with your loan application.

2. Payslips for last three months

This is a requirement for standard car loans. Lenders will review your payslips over the last three months as proof of your income. Most lenders will ask you to provide this even if your credit history is perfect.

3. Tax returns

If you’re self-employed or unemployed, lenders will ask you to provide your tax returns over the past 3 years with your loan application. This will give lenders an idea of your proof of income.

4. Notices of assessment

Self-employed people may also submit notices of assessment as part of their financial statements. Notices of assessment can also work as proof of income if you are applying for a low doc loan.

5. Bank statements

The lender will usually require three months of bank statements. Your bank transaction listings will give lenders an idea if you’re financially responsible or not.

6. Centrelink income statement

If you’re unemployed, but you receive Centrelink payments, then lenders will ask for your Centrelink income statement. This is because many lenders consider Centrelink payments as viable regular income.

7. Credit card statements

Lenders will always require people with bad credit to provide their credit card statements with their loan application. Your credit card statements will give lenders an idea of your outstanding debts. It will also show if you’re financially responsible and if you make payments on time.

8. Mortgage details

If you have any mortgages, lenders will require you to provide the details along with your loan application. This will give lenders an idea of your outstanding debts.

9. Other loan details

If you have taken any other prior loans, you will need to provide all details to lenders. Again, this will give lenders an idea of your existing debts.

10. Co-borrower information

If you can’t qualify for a loan by yourself, using a guarantor or co-borrower can help you to get over the line. The lender will need some financial information from your co-applicant in this case.

Case studies: How these documents help people get bad credit car loans

Arthur White is a struggling musician in his early twenties. While he does book gigs, he needs to travel around with his equipment. Because of his sporadic employment, Arthur was unsure if he would be able to secure a car loan. He decided to get in touch with car finance specialists who suggested him to provide Centrelink income statements with his application. This document proved that even though Arthur is unemployed, he still has some income and he can make repayments. His Centrelink income statement was what helped him get a loan.

Joanna Taylor is a single mother in her late thirties. She works part-time and also takes care of her daughter. She got a new job offer but needed a car to commute. Joanna’s current financial situation may not be the best, but she has no outstanding debts. Also, she always ensures to pay bills on time. When she applied for a bad credit loan, she also provided her credit card statements and her bank statements. Lenders noticed that she was financially responsible and her loan application was approved.

How Loans for People with Bad Credit can help

At Loans for People with Bad Credit, we’re professional car finance consultants. Bad credit car loan requirements are certainly very strict, and no one understands this better than us.

We know what lenders look for in loan applications before approving bad credit car loans. When you approach us, our consultants will help you in every way to get your car loan approved. While we’ll help you arrange for the documentation you need, our consultants will also make sure that your loan application is presented in the best possible way to lenders. We’ll help you obtain a bad credit car loan effectively and efficiently!

Apply for bad credit car loans today!

There’s no reason to worry if you have bad credit – you can still get a car loan. Just make sure to arrange all necessary documents and provide them to lenders with your application.

And, to maximise the chances of your loan application getting approved, consider us at Loans for People with Bad Credit.

Call us to learn more about bad credit car loan requirements today!

Angela Monroe
Angela Monroe is the Community Manager at The Positive Group, specialising in giving people the information that they need when they need it, and putting you on the path to a fair financial future. She has 8 years of experience in helping Australians find the right finance solutions, and regularly contributes articles to empower Australians with the knowledge they need to become financially healthy.

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