Written by Understanding what it means to be discharged from bankruptcy will smoothen your car loan application process. This basically means you have been released from all responsibility from existing debts for a period of 12 months or more. This will allow you to apply for a discharged bankrupt car loan, or a bad credit loan even if the bad mark on your credit file has not been erased.
Being discharged from a bankruptcy means a second chance to start afresh with your finances. However, to get things right the second time around means seeking professional advice to avoid making the same mistakes. You can speak to a financial advisor or a broker when it comes to knowing what options are available for you and what you can comfortably afford without straining your finances. Seeking professional advice can help you find an option that can boost your credit score in the long run.
What to watch out for as a discharged bankrupt
Although you may have access to purchasing an important asset such as a car, there are certain traps to avoid to avoid accumulating more debt that could push you back to square one. Applying for a range of small loans can seem like a safe thing to do when you have just recently been discharged from a bankruptcy, but this could be a costly mistake that can affect your application and credit file. It could also make you come across as an irresponsible borrower who needs small loans to stay afloat.
How to improve your chance of approval
There are a wide range of things on how to improve your loan application. This is where thinking like a lender helps. You're going to need proof of a steady income, no arrears that still need to be paid or overdue bills and avoiding applying for credit too many times in a short period. It's possible to call in and ask a broker or lender what their requirements and how you can improve your chances.
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Over a decade in the industry
We’ve helped thousands of Australians with their finance needs since 2010, so you can depend on us to find you a deal.
Obligation-free quotes
All our car loan quotes are obligation-free, so you don't have to worry if you aren't ready to sign on the dotted line yet.
Trusted bad credit lending specialists
We're partnered and accredited with a wide variety of lenders across the country, including bad credit specialists.
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Commonly asked questions about discharged bankruptcy loans
No. Lenders will only approve a loan if you have been discharged for a minimum of 12 months.
Yes, we offer finance for people who are self-employed. You will need to prove that you have a stable employment. can speak to one of our consultants to find out what options you have.
Yes, our team of brokers is ready to assist you on any queries that you may have with no obligation to apply.
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