Sometimes it isn’t always practical, or possible for you to buy a car outright. We get that – life happens and sometimes you need a little bit of help in the form of a car loan. While it can be relatively easy to apply for a loan through your bank, you may run into trouble if your credit score is less than perfect, or your weekly income does not meet their requirements. Do you know how to get a loan with low income? Well we’ve put together a guide for you today to give you some idea of the process.
How to get a loan with low income
If you’re wondering how to get a loan with low income, you will need to have a think about the different aspects of a loan and what your requirements are:
- A lender willing to accept you with low income
- Low weekly repayments
- Low deposit
- Reasonable terms
Unfortunately, there are some limits regarding the minimum income for a car loan. If you are receiving a total income of less than $400/week, we won’t be able to help you find a loan. Why is this? Even though we do our best to find you a loan with repayments that will fit into your budget, when you have a weekly income of less than $400/week, you may find it difficult to balance the general cost of living with paying back the loan. Having this cap helps to protect you financially (we’d hate it if you couldn’t pay your rent or afford food), plus it also protects our lenders (because you’re more likely to spend your money on rent and food than paying back your car loan). If you do, however, meet the minimum income requirements for a car loan with us here at Zoom, this is how to get a loan with low income:
1. Think about the type of car you will be purchasing
Do you need a small city car or a ute with a bit of grunt? Thinking about the type of car you will be buying, and working out about how much money you will need to pay for the car is essential. This allows your broker to determine whether or not they can find a loan for you, and work out what sort of repayments and deposit you will need in order to purchase the car. Also have a think about whether you will be buying a new or used car. We can help you find finance for both!
2. Gather your documents
To apply for a loan you will need proof of income and identity. Proof of income documents can include:
- Tax Returns
- Bank Statements
- Invoices and Contracts
- Centrelink Statements
Proof of identity documents include:
- Drivers licence
- Centrelink cards
- Birth certificates
Having this information prepared before you get started will ensure that the application process is as quick and smooth as possible
3. Choose a reputable broker
When applying for any form of loan, it’s usually a great idea to go through a broker. When you choose a broker, you are more likely to end up with the best possible deal. When your credit is looking a little worse for wear, going through a broker can also help to prevent any further damage to your credit score. Unfortunately, every time you apply for a loan with a new lender (if you’re shopping around, or have your application rejected, for example), your credit score will take a hit. When you choose a broker like Zoom Car Loans, we have access to a huge range of Australian car loan lenders. Our car loan experts have a great relationship and understanding with each of our lenders, so they are able to help you choose the lenders that are most likely to accept your application. Having access to so many lenders also makes it a lot easier for our brokers to find you a great deal, saving you shopping around on your own. When you have low income, it’s even more important to choose a broker. Doing so will ensure that you only apply with lenders who are understanding of your situation.
4. Apply for an obligation free assessment online
It only takes a few minutes to fill out our online application form and one of our car loan experts will get back to you within 20 minutes to discuss how to get a loan with low income with you.
5. Discuss your options
Once our car loan experts have determined your personal situation, they will compile a tailored loan package to suit you and your budget. They can talk you through the different options and will help to recommend the best lender for you.
6. Apply for the loan
Once you have worked with one of our brokers to choose the best car loan for you, it’s time to apply. We’ll walk you through the whole process, plus, we could have your car loan approved within 24 hours of you first contacting us!
7. Purchase your car
Now that your loan has been approved, it’s time to choose and purchase your car! It’s that easy.
So what are you waiting for? Now that we’ve shown you how to get a loan with low income, it’s time to get started. If you already have some idea of the type of car you will be purchasing, apply online today using our quick loan application form!