Bad Credit Car Loans

Frequently Asked Questions

• How do I apply?

  Applying for a bad credit car loan can take just a few minutes. And all you need to begin are some personal details and information regarding the finance you require.

  If you have any questions about Rapid Finance, you can contact our team on 1300 467 274 or complete a Free Finance Assessment using the form on this page. You can also email us at rapid@gorapid.com.au

• What is the process?

  Rapid Finance are finance specialists. Our team have access to a range of car loan options to suit a range of solutions. This includes clients with a 'bad credit history' – a broad term covering everything from a missed utility bill to a previous bankruptcy.

  A lot of clients, think as they have been declined elsewhere, that it is not possible to get a car loan. In a good percentage of cases, this is not the situation – The client just needs to engage the right company to assist, like Rapid Finance!

  To begin, complete an application online or over the phone. A member of our team will then contact you. They’ll assess your situation, evaluate your options and find a car loan suitable for your situation. Find out more about the Rapid Finance process here.

• How do I know if I have bad credit?

  A bad credit history can be due to a range of reasons. A poor credit history could arise due to a simple missed bill from last month, or a failed business venture from years ago. Bad credit can turn up because you moved address and the bill was never forwarded to you or it could be because of a messy separation! Over the last couple of years, comprehensive credit reporting has turned up, which means, most of the banks are reporting 24 months of payment history on any credit facility you have, back to the credit reporting agencies. Whatever the reason, a bad credit history can make getting finance hard.

  In most cases, you'll know if you have a bad credit history. But it's possible that you don't know the full details. Consider contacting the Australian credit reporting agencies in order to get a copy of your credit history. 

  It’s important to note, that there are 3 Credit Reporting Agencies in Australia. They are :

  1. Equifax 

  2. Illion

  3. Experian 

  The Main Credit reporting Agency is Equifax, however, over the last few years, Illion has been gaining traction – Some lenders check one Credit Reporting Agency, some two of them and some do all three! 

  It all depends on which Credit Reporting Agency, the credit provider subscribes to – This in itself makes it hard for you to apply for a loan with a lender directly, unless you do extensive research, as it’s most likely you will not know which credit reporting agency any given lender subscribes to.

  The best option is to call the Rapid Finance team to discuss your finance options.

• Can I get a bad credit car loan on Centrelink or a pension?

  Yes, you can apply for finance even while receiving Centrelink benefits or a pension. While not every benefit will be counted towards income, many are, including family tax benefits and the veteran’s affairs pension. In Fact, most benefits can be utilised with the exception of Austudy and Jobseeker as well as a few other smaller benefits.

  To get approval for a car loan, you'll need a primary source of income to support these payments. But Centrelink benefits or a pension can be considered as part of your overall financial situation. Still unsure? Call Rapid Finance for more information.

• Can I get 100% finance?

  Yes. Bad credit car loans without a deposit are possible for people with a bad credit history. It comes down to your application and overall profile. But note that if you have a really bad credit history, a deposit will add strength to your application and increase your chances of approval. There may also be other options available to you, such as a vehicle trade-in and / or additional security of another asset.

  To get a bad credit car loan without a deposit, you will need to demonstrate your ability to meet repayments without any issues. As a Rapid Finance customer, a dedicated finance expert will review your situation, find out what is possible, and negotiate a bad credit car loan on your behalf. Talk to a Rapid Finance specialist for more information.

• Is it possible to get a car loan the same day?

  Yes, we have helped clients get same day car loans in the past – even when they had bad credit. The slowest part is generally, the client, getting us the documents, we need. If they are provided promptly, we can assist the application with speed! Quick approvals can be helpful for clients who need to make the most of a deal or limited time offer.

  The advantage of Rapid Finance is that we can offer fast finance without you risking getting ripped off. You are our client and we will do everything we can to assist your application with the best rate and lowest fees, subject to your overall profile. We compare a range of financial products to see which ones match your needs – and quickly organise the information so that you can get approved fast.

• What are bad credit car loan interest rates?

  The interest rate available to you depends on a range of factors, including your credit history, employment history, residential history, the loan amount , your credit score and the car you wish to purchase. Generally speaking, however, a bad credit interest rate is usually more than 10% p.a. However, your interest rate will depend on your overall circumstances / profile. The good news is that our loans are “Interest reducing loans” – This means, interest is calculated at the end of each month, based on what your balance is at the time. You can make extra payments, without penalty and you can pay weekly or fortnightly instead of monthly, also without penalty. Generally, there is also no penalties fees for paying the loan out early, though, that is lender dependant – Even if there is a fee, its generally very small – Usually between $ 100 - $ 750 dollars and interest is only calculated up to the day you pay the loan out.

  There are many ways to reduce this rate. It’s also possible that there may be mistakes on your credit history, or you have other financial strengths. A Rapid Finance specialist can investigate these options and the potential for lower rates. (and assist if there is mistakes on your credit file/s).

   

• Can I get a loan for a used car?

  Yes, you can get a bad credit car loan for a used car. The details of the loan, such as the loan amount, may be reliant on other factors (Such as your overall profile). Generally cars up to 12 years old are relatively easy to do, however, depending on the age of the car and its value, it can sometimes be tricky to get your dream car – However, a Rapid Finance specialist can assist you through this process. 

  It’s important that you do not apply for credit if you're still in the research stage. An application for finance will be recorded on your credit history, so making multiple applications across many lenders may flag you as a risk. The biggest mistake, our team at Rapid Finance sees, is a customer applying for the same loan with multiple lenders in a short amount of time. From a lenders aspect, this looks like the applicant is desperate and has no idea what they are doing. Lenders, generally do not like this. It also affects the customer’s credit score, which in some cases, causes an instant decline. A Rapid Finance specialist assesses your profile for you without putting these hits onto your credit history. After all, with 19 years of experience, we are confident we have our customers covered!

• No credit check on a bad credit car loan?

  Generally, it’s not possible to get a car loan without a credit check. As part of the National Consumer Credit Protection Act, a credit provider needs to make sure that an application for finance is suitable for the applicant before approval can be made. Reviewing financial information, such as a credit history, is part of this process, especially since comprehensive credit reporting has turned up.

  But even if you have a bad credit history, it may be possible to get finance. A credit check helps us find the best solution, especially with regards to bad credit car loans. We will try to figure out ways to improve your situation or strengthen your application for finance. In some cases a previous loan that was paid on time, could help achieve obtaining a loan, even if the applicant has defaults!

   

• Can I get a car loan if I’m self-employed?

  Yes, if you’re self-employed you can apply for bad credit car loans. We can prove your income and ability to meet repayments based on alternative documentation. Even if you have a bad credit history, there are ways we can look at strengthening your application, depending on your overall profile.

  If your car loan is for business purposes, then consider applying for a business car loan. There are a number of options to consider that can potentially reduce your personal tax liability or match repayments with your income.
  
  For more information on all of our car loan options, hit the button below.

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