Lenders may consider several Centrelink benefits while assessing your eligibility to apply for a car loan. Centrelink Payments that might be considered for assessment are parenting payment, Family tax benefit, aged pension and disability pension. Centrelink payments are of two types - regular and long and it is necessary to check the type of payment you are receiving before applying for pensioner car loans.
Can you get a car loan on Centrelink?
Yes, you can! But it ultimately depends on the individual's capacity to repay the loan, minimum income requirements and standard lending criteria. If Centrelink payment is your only source of income, you might have to pay higher interest; lower interest can be charged if it is your partial source of income. Pensioners receive all their revenue through Centrelink payments.
Pensioner car loans
You must apply for an affordable loan if your sole income is Centrelink payments. Two prominent ways to make loan repayments affordable are:- longer repayment terms and borrowing less. A longer repayment term will have more interest rate, so buying a cheaper car is better. Lenders will usually approve a secured car loan for you, which means your car will be used as a security for the loan. If you don't want to put your car as security, then the best alternative option you have is finding a guarantor who agrees to become legally responsible for loan repayments if you fail to do so.
Bad credit car finance on Centrelink
A bad credit score will make you ineligible for a loan, so you must clear all the overdue bills and improve your credit score before you apply for a centrelink loan for car.
How to apply for a car loan while receiving Centrelink payments?
Here are a few steps you need to follow:
1)Find the ideal lender
A lender willing to accept regular Centrelink payments as a source of income will be an ideal match for your requirement. Your lender should bring the best deal for you after discussing and considering all the possible options. The flexibility and willingness of lenders make the loan process smooth.
2) Pre-decide the budget
With a realistic budget, finding a perfect car that fits your requirements and car finance will be relatively easy. Law prohibits lenders from lending unaffordable loans for you to repay, so if you are given pre-approval, the repayment should nicely fit in your specified budget. Try to eliminate all unnecessary expenses to avoid any delay in loan repayment.
3)Apply for the correct type of finance
If you wish to purchase a car and make vehicle modifications, You will require additional funds. In this case, a personal loan is the best option. Personal loans are comparatively more expensive than other easy car loans, but you can take a lump sum amount through them, which will help you to recover the vehicle's cost and modifications. Before deciding the type of loan, you want to undertake; it is necessary to weigh the pros and cons. Check-in what type of loans you are eligible to apply.
Benefit for centrelink loan for a car
Credit history is one of the most important factors for lenders while assessing the borrower. Centrelink payments don't impact your credit score, making it easier to become eligible for the loan.
If you wish to apply for a centrelink loan for car and want the process to be hassle-free and less time-consuming, you must consult a car finance broker. Freedom car ensures your pensioner car loan approval and helps with all the paperwork required for the loan.
Source URL: https://www.freedomcars.com.au/news