You’ve decided to buy a new car. However, you know you will buy a better vehicle if you can obtain car finance. It’s a sensible decision. First of all, you need to obtain a loan. When your first application with your bank or a finance company may potentially be declined, it’s tempting to start submitting applications elsewhere. Surely, one of them must be successful eventually? Wrong. The truth is that this is potentially the worst possible thing you could do.

Here’s why. There are three common reasons why your application may have been declined by the first lender (possibly your bank or credit union);

1. The lender may have decided that you can’t afford the repayments, based on your regular income level.

2. Your credit history may have shown you have a poor repayment history.

3. You’re unable to provide security for a sizeable loan.

It doesn’t matter that you know you can afford repayments. Regardless, the lender will stick to their own strict set of criteria and lending policies.

The problem you now face is that every time you submit a loan application, your chances of gaining a loan will grow smaller. It all comes down to your credit score. When completing an application, you always give the lender permission to view your credit file. This is usually held by Veda, the consumer credit reporting agency. Your credit file shows any history of previous repayment defaults, court judgements, bankruptcy and other factors. It also indicates the lenders if you have made a high number of unsuccessful loan applications.

If you were turned down and the information they gained from your credit report contributed to their car loan decision, the lender will record it with the credit reporting agency. As a result, there is a chance that your subsequent applications being successful may decrease, because your credit score goes down each time. It’s a vicious cycle.

However, all is not lost. If this is happening to you, there are two routes you can follow at this stage.

1. 1. Find out what is contained in your Veda credit report, or perhaps let someone moreexperienced and qualified assist you by;

1. 2. Applying for a loan without affecting your credit score, by using a car loan company. Working on your behalf, they will compare lenders to see whether you are eligible before submitting formal application. This means that you will know whether your car loan application will be successful before submitting it.

Even better, you can do both at once, by talking to 1800Approved.com. We will talk with our panel of more than 40 lenders that we are in contact with, including those who do ‘low doc’ loans for applicants with poor credit scores. The result is you receive a car loan, which can help your credit score to improve in the futre with consistent and punctual loanrepayments.

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Allow 1800Approved to finance the car of your future. 

1800Approved is an award winning finance broker - Australian's Broker of the Year for 2016 ! 

We have helped tens of thousands own their dream car, boat jetski or caravan and/or finance business equipment.

Let us help you finance your dream car today.

Call us on 1800 277 768.  Obligation-free.