While pick-ups are pretty popular in Australia, the love for trucks is seeing a rise, too. And why wouldn’t it? They are fashionable, functional, and very fuel-efficient. All the latest truck models have a luxurious feeling as opposed to the feeling of driving a heavy-duty towing vehicle.
If you are looking to get your hands on a truck to match your fancy urbanised lifestyle, you must also be prepared to shell out more big bucks.
This means it’s time for truck financing! Got bad credit? No worries!
You can get a truck loan with bad credit if you follow these 4 tips:
1. Understand the Credit Situation
When you apply for a truck loan, be prepared for the lender to do a thorough credit check on you. Your credit history will help him understand your credibility status. So, if you’ve a bad credit score, getting your loan approved could turn into a struggle.
So, before you reach out to the lenders, assess your credit situation instead of being surprised by the rejection.
Australians can get a free copy of their credit score once every 3 months. Reach out to the credit reporting bodies like Experian, Equifax, and Illion.
2. Improve Your Credit Score
Now that you have an accurate picture of your credit score, you can find means to improve the situation. If you do it diligently, it takes no more than one year to switch the credit score from bad to good.
Analyse your credit report. Circle the concerning areas that you can improve. Do you pay your bills past the due date? Do you have multiple debts on your head? Is there a large credit balance lying on your credit cards?
Find the one source of the problem causing a dent in your credit score and change your credit habits.
Use your credit card often, but not recklessly. Pay your bills in full and on time to earn the tag of a reliable borrower. This will ultimately make you look good in the eyes of the lender.
Additionally, make sure to double check the credit report. Look for any discrepancies and ensure that you are not burdened under the bad credit of another person. Mishaps like these happen quite often than you know!
3. Save Cash for Down Payment
Bad credit could result from an unfortunate event like a long-drawn divorce battle or bankruptcy. But if you have a steady flow of income, try to put aside a little cash.
Having cash for a down payment would indicate your ability to save, thus making you look like a sound person, ready to make a responsible investment.
4. Reassess Your Budget and Desires
Without saving and a good credit score, the aim to buy the latest version of the most popular truck model might not be the right thing for you.
Reassess your end goals and look at the kind of budget you can realistically attain. Then decide whether getting a shiny new truck is a good idea.
It makes no sense to do your best to go for a truck loan with bad credit only to be unable to pay it back. This would put you in a worse credit situation which will ultimately add to your stress and never-ending monetary problems!
Buying a truck is always an expensive affair. So, jumping into it headfirst without a game plan would do more harm than good.
Take a step back to get a sense of your credit score and make sure there is no inconsistency in the report. Next, try to improve your credit score – pay bills on time, do not take multiple loans, and be a fiscally responsible person.
If possible, save cash for down payments, too. More importantly, ask yourself again, ‘is your dream truck worth the financial crunch you may face?’
Get a truck that you realistically can and make the best out of it!