Bad Credit Car Loans for People with Credit Defaults?

You've decided to buy a new car and applied for a car loan, right? Then, the news that you have something on your credit file and you need advice on bad credit car loans. However, you might be surprised that there are car  loans for people with bad credit; plus people with bad credit would have been good credit customers not so long ago.

There have been some changes to how credit files work and how your credit score is affected. To explain, it's called positive credit reporting. Being that, this new system can keep record of minor late payments even when there are no credit defaults. For this reason, it affects your credit score and you can be considered bad credit.

Will i be approved for a car loan with credit defaults?

Quite often, we find our clients don't know what's on their credit file; or the problem with their finance applications. For that reason, it's important to understand your story, credit file and loan application fully for a better chance of a loan approval. First thing to remember, is that we work for you not the bank. In this situation, we are a team working together to assist you in your finance approval.

Car Loan Assessment Guarantee

  • Firstly, we need to understand your credit issue, so we offer a free credit check as part of our loan application process.
  • Secondly, before you buy a new car, we can help you get a free pre-approval for finance, so you know the maximum loan amount, interest rate, and repayment of your car loan. Indeed, you know all this before you start looking for a car.
  • Importantly, we make sure your loans approved in principle so you know what you can afford and the term of the loan.
  • We have a range of lenders to help you get into that new car with competitive bad credit loan interest rates.

With competitive bad credit interest rates, you might be surprised by what you can afford. Plus, you can start on the road to repairing your credit file.

Loan Features for Car Loans with Credit Defaults

Of course, there is a range of loan options and features. Also, fees and interest rates depending on the lender and chosen finance product. However, with this in mind:

  • Firstly, larger loans above $75,000 available with a strong financial position.
  • Secondly, the vehicle age can be >10 years.
  • Also, Car Loans up to 120% of vehicle value.
  • Plus, competitive interest rates are based on credit impairment.
  • Loan terms up to 84 months.
  • Loan repayments can be each week fortnight or month. However, the most common is monthly repayments.

Additional Car Finance Information

  • By and large, credit defaults, court judgements, & discharged bankruptcy & part ix debt agreements are acceptable.
  • After that, there are consumer and also business bad credit car loans. 
  • For the most part, business car loans only require business profit to cover the loan repayment.
  • Furthermore, personal loans and credit cards can remain pending your income able to service the bad credit car loan.
 
 

Loan Saver Network offer bad credit car loans assessments.

  1. With this in mind, car finance is very different than other forms of finance such as home loans. What's more, the loan assessment can be more relaxed with respect to credit defaults. However, some of the other assessment policies can be quite strict. Given these points, we help steer the loan process to make your loan application as simple as possible.
  2. Given that, bad credit car finance can often incur higher interest rates and fees.
  3. In summary, competitive bad credit car loan interest rates are related to your personal credit score.

If you need a new car and struggling to get finance because of bad credit, keep in mind, it doesn't have to be complicated. Most important, is that we help with car loan approvals when there are credit issues. As a matter of fact, we understand the credit problems and the lenders who can accept them. Hence, we've helped many people buy cars with credit problems such as:

  • For instance, court judgements.
  • Then credit defaults.
  • Coupled with discharged part 9 debt agreements.
  • As well as discharged bankruptcy.
  • In summary, various other credit issues.

In fact, we have a range of lenders to help you get into a new car with competitive bad credit loan interest rates.

Let's talk about a bad credit car loan solution that suits you

What are Bad Credit Car Loans?

Bad credit car finance is used to buy a car when you have credit defaults. Given that, we find when you have credit defaults on your credit file no lender trusts you or understands what caused the problem. Admittedly, most traditional lenders don't like lending on car loans for people with bad credit. Obtaining an approval for a car loan would help put your past issues behind you, put you on the road toward restoring your credit and getting into a decent car.

Given these points, the lender risk is minimal as the car secures the loan. As a result, a competitive fees, interest rate & borrowing capacity can be achievable. 

There are some important things to remember when buying a car with finance. Hence, see the money smart website for information on car loans.

 

What credit issues are acceptable?

There are many forms of bad credit such as:

Generally, the lenders like to see the credit issues older than 6 months old, and also paid. However, in some cases, it can be very recent or the credit issues left unpaid.

What types of loan structures are available for people with bad credit

The loan types available are similar to major banks and traditional car finance. As such you can obtain the same loan structures pending your credit risk. However, the same features are still available. 

  • Chattel Mortgage
  • Lease
  • Hire Purchase

As your bad credit risk increases the loan terms, and residual terms would decrease. In order to obtain the loan types and structures available to you; Loan Saver Network offer free car loan assessments.

Can i buy an older car with a bad credit car loan?

The age of a vehicle is an important factor with all car loans. Consequently, most lenders like to see a car no older than 10 years at the end of the bad credit car loan term. However, we have arranged great bad credit car loans against cars up to 20 years old at the end of term. Which, consequently opens up the availability of prestige and other desirable older vehicles.

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What Loan Terms Are Provided With Bad Credit Finance?

Bad credit car loan terms vary depending on the severity and age of the credit impairment. Therefore, loan terms can be from 1 year up to 84 months with the most preferred term at 60 months. Obviously, the shorter the loan term the higher the repayment so we find most loan terms range from 36-60 months.

What else do I need to know about car finance?

Cars are a depreciating asset with some cars dropping in value considerably when you drive them out of the showroom. As a result, we highly recommend a type of top-up insurance called gap insurance. Particularly, gap insurance covers the gap between the loan amount owed, and the value of your car in the event of an accident where the vehicle is a total write off. For this purpose, gap insurance is a second optional policy to your comprehensive car insurance.

Requiring Car Finance?

If you require a car loan with no upfront fees* then apply now! We'll have one of our bad credit car loans Melbourne consultants call you within 4 working hours. As, we help find car loans for people with bad credit.