Bad Credit overview
If you are one of the many people who have a bad credit rating and wondering if you will ever be able to purchase a new car again. There are still few lenders around that specialise in bad credit loans. Only a few years ago, most of these lenders were priced out of the market. Now, there has been a shift and with rates at all-time lows, bad credit ratings are not been penalised when it comes to the monthly repayments.
At car loans for people with bad credit we can arrange a new car loan that is in line with the amount of credit impairment you may have accumulated along the way. We look at the different types of loans available for you. Before you consider your options and the type of car you have mind, it will help if you can address some of the points listed below. Please remember that these lists presented below are only a guide. Most of the information below will be required by the lender to do a full assessment to make sure that you are really capable in getting a loan.
Lists of options you can consider in getting loan even if you have bad credit rating:
- Provide exact and accurate information in your loan application. This is where we ask you information that is required to arrange the loan, such as about your expenses, income, your assets and your liabilities. So, make sure that you’re prepared to enable us to find the right solution and the right car loan product
- Be honest about having a bad credit. If you do have a bad credit rating, do not hide from us. Its far better to be upfront so that we can provide an explanation to the lender, which will in turn help us achieve the most suitable car loan to suit your needs.
- Check your own credit file out first. Where possible, obtain a copy of your own personal credit file before you meet with us. This can help you uncover whether you have any mistakes or a problem in your credit report.
- Pay your existing debts. Clearing up your existing debts is one way that can help you step forward in getting a loan.
- Show us your savings history. If you’re planning on providing a deposit for your car loan, bring along your bank statements showing exactly where your money goes and how much is being saved in your account.
- Choose for a specialist lender. If you have bad credit and looking for a car loan it pays to provide us with all of the information mentioned above so we can look at all the options available to suit your solution. We have access to a range of specialist loan providers willing to help those with bad credit.
General Lending Guidelines for bad credit/custom Car Loans
Generally Acceptable
- Employment casual/seasonal<12mths may be considered, but not if on probation or where total employment<6mths.
- Short Term Employment provide details of previous employment to support application.
- Under 23’s need to demonstrate good confirmable credit activity over the past 6 months, and where cannot be substantiated, an acceptable guarantor (i.e. must have clean credit and be a property owner/buyer) will need to be provided.
- Bankruptcy Part 9 acceptable once discharged, Part 10 acceptable if discharged >6 months
Non Acceptable
- Repairable write-offs, grey imports, motorbikes, caravans, boats.
- Remote locations including areas accessible only by 4X4 vehicles may not be considered.
- Repossession/Bankruptcy Unpaid Repossessions unacceptable.
- Multiple bankruptcies unacceptable.
- Centrelink as sole income is not acceptable for car loan finance. Where the application has income other than centrelink, the maximum allowable for centrelink, is 30% of the non-centrelink net income.
- New-Start Allowance not considered.
- Learner Drivers not acceptable.
- Performance Vehicles for under 23’s generally not considered.
- Non-Permanent Residents i.e. those on a short term visa generally not acceptable.
Calculators
Check your repayments to see how much you can afford each week. This will give an indication of the type of loan amount you may be able to arrange. Give us a call now !