The How to Guide to Bad Credit Car Loans

Having a bad credit rating is not the end of the world. You will see your car loan application approved – provided you meet reputable lenders’ key approval criteria. The following five tips will help.


Always be honest in your application. That means two things: Make true statements and don’t leave anything out. “Lending money is about trust,” says Kyle Rhys from “The lender needs to trust you, and you have to expect your application to be scrutinized. This means the claims you make in that application will be cross-checked against your financial records. It is always much better to paint a true picture in your application, rather than a falsely positive one.”

Bad Credit Car Loans

Credit file

Go to to see how easy it is to access your credit file. Look carefully at the entries in your file, and if you believe any error has been made, contact the company which has made the entry, and discuss the matter.

Bank account

Your bank records will form part of your application. You need to demonstrate sound money management skills. This means: regular income plus not letting your account get overdrawn. In other words, you need to spend less than you earn. Ensure that there are always sufficient funds in your account to meet regular automatic deductions, and try to save each week, if only a small amount. Regular savings are an easy way to demonstrate to a potential lender that you have sufficient income capacity to repay a loan.

Credit cards

Pay your credit card on time – and pay more than the minimum required monthly repayment. This demonstrates two things to the person assessing your application: first, that you take your financial obligations seriously. Second, that your income capacity is sufficient to more than cover your obligations.


Lenders will look for two things here: regular income and stability. If you are a casual employee, you will need to have a significant track record with your current employee. In the case of full-time and part-time employees, you will need to have worked beyond any probationary period in your current employee contract. It will be viewed positively, from a stability point of view, if you have changed jobs only a few times in the past several years.

Denny Jones

Hi, I'm Denny Jones, a seasoned financial advisor and writer passionate about helping others conquer debt and achieve financial stability. With over a decade in the industry, I've guided countless individuals toward smarter financial decisions through practical advice and insightful writing. Join me as we navigate the path to financial freedom together.

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