Have you just entered the workforce or are a casual employee without regular pay slips? Perhaps you're a freelancer or work on contract. In any of these circumstances, it can be extremely hard trying to secure a loan to buy a car. Most lenders are looking for steady income earners and may reject your claim from the start. But low doc car loans may be available where you don't have to produce a great deal of documents. Here are some steps to help you get approved:

Make Sure You Have Decent Credit History

While you don't have a steady income, your lender may choose to assess your eligibility some other way. A popular check for lenders is often your credit score so you'll want to ensure you have strong or decent credit history with no major red flags. Having decent credit history requires you to pay back bills on time and take minimal loans so make sure you're diligent about your finances. Putting money into investments and savings funds will also help your credit history get stronger over time.

Offer Some Form of Security

Getting approved for a car loan with minimal documents is easier said than done. Lenders need to know that you intend to pay back the loan without default, so you may want to consider offering some form of security if you have it. For example, your house or existing car can be used as security to get a new loan for a car. With this extra security, you're more likely to get approved for a car loan with minimal documents. While secure loans are available, you may also be able to access unsecured loans through your lender so it's worth checking with them about that if you have no security to offer.

Be Prepared for Higher Interest Rates

Without documents, you can certainly get a loan to buy a car, but you may have to be prepared to pay higher interest rates as the lender will likely consider you higher risk than candidates with all their documents intact. This is a small price to pay when you consider the fact that you'll be able to afford a car now rather than wait another few years until you can put all your documents together. In some cases, you may be able to negotiate reduced interest rates by providing some type of collateral based on what your lender recommends.

Low doc car loans are quicker and faster to process, which is why these are often the preferred choice. Follow these steps to get approved with minimal documents. For more information, contact services such as AAA Finance & Insurance.