If you've recently set up home in Australia, you'll already know that the initial months can be difficult. There seems to be an endless stream of paperwork as every organisation asks you to provide identification and references of every conceivable kind. It can be particularly hard to obtain credit when you're in this situation. While you may have been creditworthy in the past, banks and finance companies in your new country may not recognise the organisations that provided finance overseas.
At first, it seems that your only option is to buy a used car with cash. Setting up a new life is hard enough with transport, and it's very hard to do it without, even in the cities. However, there's no reason you shouldn't plan ahead and work towards purchasing a new car, ute or truck, or a higher value, approved used vehicle.
This means establishing a credit history in Australia, so that finance companies can see straight away that you are a low risk customer. The best idea is to establish your personal credit record. Under the new credit reporting system, credit bureaus are obliged to register all your positive credit behaviour, as well as the negative.
As you're new to the country, you'll hopefully not have a negative record, so all you have to do is build up the positive side. That may take a little time, but it’s worth doing, as it will make establishing your new life a lot easier.
Here's how you can get started.
- Option one is to apply for a credit card. As soon as your application is accepted, it will be recorded with the credit bureaus.
- Whenever you make a monthly repayment on time, it will also be added to your credit record.
- Arrange with a trusted family member, who also trusts you, to become a joint card holder. This means acting very responsibly, as if you fail to make repayments, then they will be negatively affected.
If you're unable to wait, there are still options open to you.
- Find a car dealer who is able to offer you a 'low doc' loan through a car finance company. These are loans that are offered to people in unconventional situations, for instance, who are working and have a stable income, but little track record on the credit side.
- Talk to a specialist car finance company that can look at all your options, and find the best option by talking to various companies on your behalf. This will save you from making applications that fail, leaving a negative mark on your credit history.
As a general rule, if you wait until you have a credit record, you'll gain a better finance deal. If you want finance straight away, you'll pay slightly higher interest, and your choices will be more limited. Yet here at 1800 Approved, we can help you to find the best deal, no matter how recently you arrived here in Australia.