A credit file can contain old problems while the person's current finances look very different.
For car finance, lenders may consider both the history and what is happening now. The weight placed on each factor varies by lender and product.
What lenders may look at
Common factors include current income, living expenses, existing debts, recent repayment conduct, credit enquiries, the age of past problems and whether any amounts remain unpaid.
The car also matters because secured vehicle finance depends on whether the asset meets the lender's rules.
Explain the story without over-explaining it
If a past problem had a clear cause and your conduct has improved, have the facts ready. A concise explanation supported by current evidence is more useful than sending applications without context.
Check fit before a formal lender application
An initial broker discussion can help identify which policies are worth considering before you make a formal lender application. That does not guarantee approval, but it can reduce unnecessary applications to lenders whose rules are clearly unsuitable.
Check possible car-finance options: start with five details.
About the author: KK Neelamraju is a finance and credit professional and an Authorised Credit Representative through GPS Finance Group.
GPS Finance Group (CRN 000575797) is an Authorised Credit Representative of AFAS Group Pty Ltd (ACL 414426). AFCA Member ID 119860. General information only. Credit approval, pricing, timing and vehicle eligibility are subject to lender assessment.
Need help matching this to a finance option?
GPS Finance can review the funding purpose, conduct, documents and lender fit before you make a formal enquiry.
