A new car is one of the biggest purchases you’re likely to make, coming second only to a home or property. Recently, we’ve looked at the topic of No Doc or Low Doc loans, which offer the hope of gaining car finance to individuals and companies who’ve experienced a blot on their credit records. Now, according to the insurancenewsnet.com, it’s even possible to tidy up your credit history by diligently paying off a new car loan.

This news hails not from Australia, but America, yet some of the credit bureaus mentioned are in operation here – Equifax and Experian are unfortunately familiar to many. The fear of many people is that once you’re individually classified as poor credit or bad credit, it’s nearly impossible to lose the label. Now it seems that that’s not so.

Commentator Adam Secore of Right Direction Financial Services observes that, “You can improve a poor credit score by purchasing a new or used vehicle and making your payments on time.”

The key to this potential turnaround is the very size of the purchase. The hurdle is gaining the new car finance in the first place – once you have it, all you have to do is keep making the payments for the required period of time. If you don’t miss payments, and nobody has repossessed your car, then you will have shown that you are credit worthy.

It used to be that this was a Catch 22 situation – you could make the payments, but the problem was getting the loan approved in the first place. Yet with the advent of the Low Doc loans, it’s now possible to get a foot on the car loan ladder. Even better, you can have a new car in your possession before you even put a foot on the second rung.

The benefits go even further. As Adam Secore says, “Having reliable transportation is necessary. Without it, a person cannot get to work, the grocery store or to school. Not having a car can make an unfortunate situation, worse.” We can only agree with this.

By gaining a Low Doc loan, you have an opportunity to reverse the downward cycle. Nobody likes to talk about their difficulties, but if you wish to talk to us, we can help you apply for a loan that is affordable for you. It surprises many people how many options are on offer.

It’s worth asking us to tell you all about Low Doc car loans in Australia. With a new car, your life will get easier in the short term, while your credit score can benefit in the long term.