How to Get a Car Loan With Bad Credit

A car finance broker might be the best place to head for help...

How to Get a Car Loan With Bad Credit

When applying for a car loan, your past credit history is one of the most important factors when determining your suitability for finance approval.

But what happens if you know you have a history of ‘bad’ credit or have had a few paid defaults in the recent years?

Luckily, there are many finance services that deal with customers in this scenario.

Whilst you may have ongoing discussions or been rejected by your bank, a car finance broker will pair you up with a suitable lender that caters for your particular circumstances.

The reality is, not many people know these services exist beyond regular banks, or are too embarrassed to explain their situation to someone in order to get the help they need.

First Rate Car Loans, a bad credit car loan broker in Australia, is one such business that specialises in these types of loans and has helped fund over $50 million in loans since 2012.

When it comes to bad credit, no one is painted with the same brush as circumstances can vary greatly from person to person.

At the time of your application, lenders will assess a whole range of different factors when deciding whether to grant you finance, not just your credit history.

Existing assets or disposable income, for example, can play a big part in the process.

Are there any drawbacks?

Whilst being able to finance with bad credit can be a reality, there are some minor drawbacks when compared to a regular loan for a customer with good credit.

Higher interest rates are normally part and parcel of bad credit loans as the customer generally represents higher risk to the lender.

Once getting pre-approval, a finance broker will let you know of the interest rate that has been negotiated with the lender and will not proceed with the loan until your are 100% happy with the outcome.

Aside from higher interest rates, bad credit loans work exactly like just a regular secured car loan with ‘good credit’.

You will still have the flexibility to nominate a deposit or none at all, span your loan over a 1 to 7 year term, and even make extra repayments to pay off your principle sooner, giving you a lot of flexibility.

Where do I start?

Everyone has varying circumstances, which is why a car finance broker is the best place to start for anyone looking for a bad credit car loan.

They will provide a highly personalised service and listen to your circumstances to match you up with the best possible lender – something a bank, or other finance institution will find hard to match.

About Kate Richards 1056 Articles
Kate has always had an interest in writing and cars and now as a key member of the Behind the Wheel website team she gets to spend her days consumed by both. Aside from being a contributor and an editor at Behind the Wheel, Kate enjoys driving her Lancer EVO and walking her beloved dog, Max!

Be the first to comment

Leave a Reply

Your email address will not be published.