How can I get bad credit car loans?
So, you’ve heard about bad credit car loans, but what are they?
In Australia, having a car to get around is almost a necessity. Places are so spread out in Australia, and you can’t always rely on public transport to get around, having a car is important.
Maybe you are considering getting a car loan. But what if you have a bad credit rating? Can you still get car loans? We are going to reveal the most important things to consider when getting a car loan with bad credit. So, by the end of this article, you should have an idea of what you will do.
What is a bad credit car loan?
Cars are expensive and it takes time to save up enough money to purchase a car. But what if you need a car, and don’t have enough time to save up a lump sum to pay for it outright? Similarly, what if your car needs to be repaired urgently!
These are times when a bad credit car loan can come in handy. Car loans are loans that allow you to start using the car and you pay it off over time while you use it. It means you don’t have to worry about having a lump sum to pay for the whole cost of the car. What a relief, right?
But you can also receive bad credit car loans to pay for unexpected car expenses.
Why are bad credit car loans useful?
If you have a bad credit rating your access to credit may be limited. This is why bad credit car loans can come in handy. They can be used to help finance the payment of a new or used car. Or they can help pay for unexpected car repairs or car registration.
Car loans come in handy when you have to pay for an expected car repair. Maybe you only have 3rd party insurance so you will have to pay for any damages made to your car. Thus, getting bad credit car loans are a good way to pay for these unexpected costs.
Can you get car financing with bad credit?
Getting car financing through a dealer can be difficult when you don’t have a good credit rating. That’s another reason why bad credit car loans can be useful. It means that you can get a loan, pay for your car’s costs and start using your car to get around.
Can I get a loan for my car even if the bank says no?
If your bank or car dealer does not approve you for car financing, there are other options. These options are called bad credit car loans. They are personal loans, that don’t require a credit check to be performed. With the personal loan, you are allowed to spend it on whatever you want. Therefore, if you need to pay for anything car related, you can!
Where can I get bad credit car loans in Australia?
You can apply for bad credit car loans online. If you visit our website, use our online form and loan calculator, you will be able to fill out an application online. You don’t have to walk into a financial institution or dealership. Applying online is hassle-free.
What is bad credit?
When you have ‘bad credit’ it refers to your credit rating. It is a score that is calculated based on your financial history, and gives lenders an idea of your capability to repay loans with a score ranging between 0-1200(Equifax)that determines your suitability to receive a loan (all lenders may have different suitability ratings based on their responsible lending matrix tailored to their businesses needs). If you have bad credit, your score may have been knocked down for several reasons. The following is a list of potential explanations for bad credit:
- Not paying bills on time, or at all
- Defaulting on a loan
- Declaring bankruptcy
- High credit card balances
- Closing old credit cards
- Making multiple credit card inquiries
How can having bad credit affect you?
Though it is still possible to get bad credit car loans, unfortunately having a bad credit rating can have several disadvantages. Here is a list of some of the ways having bad credit affect you.
|It’s hard to get approved for a loan||A bad credit score means you may appear to be a risky investment, and lenders are less likely to lend to you.|
|High interest rates on loans||If you are approved for a loan with bad credit, you may have to pay higher interest rates – this is for lenders to compensate the risk they are taking.||Difficulty renting an apartment||Landlord or letting agents will often run a credit check on you to see how reliable you would be paying rent. Having a bad credit rating may influence your rental abilities.|
|Trouble getting a mobile phone contract||If you want to get a phone contract, it may be difficult to get approved if you have a bad credit rating. The provider will want to know if you are going to be reliable at paying your bills on time.|
|Higher insurance rates||Insurance providers will perform credit checks on you and may or may not cover you depending on your credit rating. If they do decide to cover you they may offer a higher rate.|
How we can help!
If you have bad credit, now is not the time for despair. Simply apply for our lender-finding service and we’ll do our best to help. What is our lender-finding service, you may ask? Well, we search for lenders, so you don’t have to. It’s that simple! We can find lenders that can offer bad credit car loans when you need it most. Before appplying for our service (it only takes a few minutes), check off these little requirements:
- Must be over 18 years old
- Be an Australian citizen or permanent resident
- Be receiving a regular income
- Have an active mobile number and email address
And that’s it! Just those four little requirements and you’re ready to apply for our lender-finding service.
How to check your credit score?
It’s worth checking your credit score before you make any decisions because you never know, it could be much better than you think. To find out what your credit rating is you can visit a couple of websites that give you your score for free.
Here is a list of some of them:
- Credit Savvy
- Credit simple
- Get Credit Score
Ultimately, being able to get bad credit car loans can come in handy. If you are unable to get a car loan or car repair loan approved from a bank or through a car dealer you can apply for a personal loan with bad credit loans. And we can help! By finding you a lender that can offer bad credit car loans, we can save you time and hassle.
They can help pay for the car itself, a car repair or even car registration – or car rego as we call them here in Australia. All of these things are necessary to do in order to be able to drive safely and legally on local roads. So, get a bad credit car loan you know where to go.
They could help you to pay for that car expense, and let you get on with your lives. So, if you’re ready to get back on the road, apply today for a lender that can offer bad credit car loans!