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Building a positive credit rating with a new car loan

Jul 28, 2021 | Stories

Sydneysider Vikas Bhatia was able to get a car loan so he could start to rebuild his credit score, despite having financial difficulties in the past.

 

Life’s pathways aren’t always straightforward, as Sydneysider Vikas Bhatia realised when he hit financial difficulties a few years ago.

After a restaurant venture that didn’t work out, Vikas went back to ‘financial square one’ by filing for bankruptcy. The result for Vikas was a three year period where he wasn’t able to access any loans or credit.

A more positive side of bankruptcy can be that it may possibly clear almost all of your debt immediately. When a period of bankruptcy is completed, you should be able to apply for loans again. However, it may be a catch-22 situation because you may have no credit rating as a result of the bankruptcy process.

You can find out more about bankruptcy here: https://understandingbankruptcy.com.au/frequently-asked-questions/the-pros-and-cons-of-bankruptcy/

In order to rebuild his personal credit rating after his bankruptcy period was complete, Vikas realised one of the best options he could take was to apply for a loan and pay it off according to the terms. He just needed a lender that would help him out.

Finding a lender when you have a bad credit history

Vikas came across Finance One after applying with a different company that was unresponsive and didn’t seem able to help

“I needed to start my financial journey again and I found Finance One through an online advertisement,” he explains. “I knew I had all the information I needed, including my pay slips as evidence of employment, bank statements and identification. It was just a matter of finding a lender who would work with me.”

Vikas decided to apply for a car loan because that would at least give the lender an asset in the event of the loan not working out if something unexpected happened. Looking to purchase a reasonably-priced HAVAL H2, he reached out to Finance One and liaised with Service Agent Cody.

“The whole process took around ten working days,” says Vikas. “I knew Cody needed some time. However, he was very quick to send emails and once approval came back, everything happened very fast.”

A benefit of a loan, even if you have a bad credit history

Vikas appreciates that, in Australia, there are rules and regulations in place to prevent people from borrowing beyond their capacity. Since his financial setback, Vikas has worked hard to reach a positive place and is now making plans for the future.

And while Vikas could have paid for a car himself, doing so may not have helped to improve his bad credit rating. “If you pay cash, you don’t get a credit score,” he explains.

Taking out a car loan and paying it off is part of Vikas’ plan to get back on track. Vikas hopes that his consistent and on time repayments will eventually prove he is a reliable borrower. This will hopefully allow Vikas and his wife to pursue new ventures in the future.

 Why work with Finance One

Vikas is happy to recommend Finance One to anyone who has a bad credit history and is seeking to apply for a loan. “They were flexible, quick and very responsive,” Vikas explains.

He adds that “It’s not all about getting approval. What was important to me was having people be upfront. But Finance One has good resources and the ability to approve loans. They were able to get my application across the line.”

Do you have a bad credit history and need a loan?

If you can share evidence that you can make repayments, together with providing all other required documentation and information, you may qualify for a loan with Finance One, even if you have a bad credit history.

Reach out to Finance One to discuss your options when it comes to applying for a loan. You will be able to access clear, helpful information from a hands-on representative who will endeavour to understand the challenges you are facing, and will try to help you find the best solutions for your situation.

Disclaimer: The information above is of a general nature only and does not consider your personal objectives, financial situation or particular needs. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your particular circumstances.  We do not accept responsibility for any loss arising from the use of, or reliance on, the information.

Article by: Clea Sherman

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