Quick car loans work in the same way as regular car loans in terms of interest rates, loan terms, and loan amounts, as well as having the option of a secured car loan or unsecured car loan. The key difference is shorter turnaround time, thanks to the speedier approval process.
The standard car loan application process involves:
Credit score check
Your credit score or credit rating is a number, based on your credit history, that helps lenders determine how trustworthy you are as a borrower. The higher the score, the more likely a lender will loan you money, and potentially give you lower interest rates. You can check your credit score with RateCity’s free credit score calculator.
If bad credit is a concern, it's worth shopping around as there are some lenders that offer bad credit car loans (note, they usually come with higher loan rates to compensate for the increased lender risk).
Passing on paperwork
Lenders require a set of financial and personal documentation to help them decide whether or not to give you a loan.
Paperwork that lenders generally ask for include:
- income statements or tax returns, depending on whether you're self-employed or an employee
- proof of your current ongoing expenses, such as bills or rent
- current bank statements to show your saving and monthly repayments history
- assets and liabilities, such as properties you own or other loans you have
- personal identification, such as a driver’s license, passport or Medicare card
- details on your vehicle, including make, model, registration number, engine number and purchase price, as well as if it’s a new or used car.
Eligibility check
It’s standard for lenders to check if you meet the eligibility criteria of the easy car loan you applied for. The minimum requirements for taking out a car loan in Australia are that you are over 18 years of age, an Australian citizen (or permanent resident) and earning an income. Lenders conduct eligibility criteria checks because it’s part of their protocol as a responsible lender to ensure that any loan product they approve will not put the borrower at harm of financial instability or risk.
