When you’re ready to purchase a caravan, it’s important you consider the entire process, including securing a loan for caravan, before committing to buying one. That’s because there’s a huge financial commitment needed with any major purchase – your new caravan included. Before you head to the nearest dealership, make sure that you’ve taken the following five steps to improving your credit before the application process.
1) Make sure your credit report is accurate
You can request a report here. Inaccurate information on your credit report can directly impact your approval on your caravan financing; especially if there are delinquent accounts or missed payments. Make sure you take the time to review everything listed in your file and check to ensure that they’re actually part of your history. If you notice anything irregular, contact the reporting department and file a dispute.
2) Improve delinquent accounts
Lenders look for a solid credit history, frequent payments and a trustworthy candidate when approving your caravan financing. If you have any accounts on your credit report with a blemished payment history, you’ll want to work on catching them up before applying. Make sure all payments are current and following your repayment schedule to improve your caravan financing.
3) Evaluate your monthly budget honestly
Before you purchase a caravan that is beyond your financial means, take the time to consider how much your family can afford to pay in monthly installments. Start by breaking down your budget into mandatory needs and any additional income that’s unaccounted for. Make sure that the payment of your caravan financing isn’t going to put a strain on your budget, especially if your employment situation changes throughout the duration of the loan.
4) Talk to a Caravan loan specialist
Before making the commitment of a new loan, make sure you take the time to talk to a caravan loan specialist, like Jade Caravan Finance. Your loan specialist will help you understand the entire application process, including any fees, charges and loan terms with you ahead of time. A caravan finance specialist will also provide a credit quote, which you can review prior to committing to the loan. If you’re unsure of anything, make sure you take the time to ask and clarify at that time.
5) Show financial stability
Banks and lending companies like to see stability when it comes to caravan financing – which includes your employment history and ability to keep money in the bank account. Make sure you take the time to start putting some money away each month, even if it’s not a considerable amount. It’s also important to make sure that you can show the lender a frequent and consistent salary too, whether it’s a weekly cheque or a monthly instalment.
Although you don’t always have to maintain perfect credit to get approval on your caravan financing, improving your overall financial health can help you receive lower interest rates, higher approval amounts and most importantly – a more positive experience dealing with the institutions trying to help you get into a new caravan.
