3 Smart Ways to Get an Approved Car Loan with Bad Credit Record


Darwin is one of the best cities to move in if you want to be surrounded by some of the most impressive landscapes in Australia. This contemporary city lies in the middle of several natural wonders, including the famous Litchfield National Parks and sandy beaches.

Of course, you need a vehicle to visit these unique places within the city. If you cannot outright purchase a car, you may file for an auto loan to own a car.

If you have poor credit standing, you may try to file for a bad credit car finance in Darwin to get an automobile. 

A good credit score in Darwin and the rest of Australia is between 622 to 1200. If you have at least a 510 to 621 credit score, you need to submit more requirements to get approval for a car loan.

But anything below that figure will get a bad credit score and make it more challenging to get a car loan. However, you can still get car financing in Darwin if you follow these tips.

#1: Know the Basic Requirements

Applying for bad credit car finance in Darwin is almost like the usual car loans for people with good credit standing. However, you need to comply with more requirements to prove that you deserve approval.

First, you need to present proof of identity to qualify for the loan. You must be at least 18 years old or older to apply. You must also submit your proof of residence to prove that you have an address in Darwin and are a bonafide Australian citizen or resident.

It is also crucial for lenders to know how to finance your loan. You need to be currently employed for at least six months or own a business for a minimum of 12 months to get approval. Most importantly, your annual gross income should be at least $45,000 to apply for a car loan with bad credit history.

#2: Know How Much You Can Afford

You must have an idea of how much you can spend on an automobile before applying for a car loan. You may look for a car loan calculator online to check how much you can afford to repay a loan based on your current financial capacity.

You must also consider the other costs of applying for a car loan, including the sales taxes and other add-ons like an extended warranty.

#3: Understand the Terms of Your Car Loan

Once your application gets approved, the lender will send you a notice for instructions to start viewing the car you plan to purchase. First, you must take a moment to sift through the car loan details and study the terms of approval. The instructions will also include the vehicle guidelines to understand what you can get for your loan.

Some lenders will send a list of suggested car dealerships in Darwin and nearby areas. They will include a list of documents to present to the dealer where you find your dream car. You may also spend some time researching for a vehicle that suits all your requirements and falls under the scope of your approved car loan.

Applying for car financing with a bad credit record in Darwin does not have to be a daunting task. You only need to comply with all the requirements and prove that you can repay your dues on time to get the approval.

Then, once approved, you can start driving your vehicle in the city to get to the most popular spots in the capital of the Northern Territory.