Can I get a car loan with a bad credit check?
Whether you’re looking for an SUV, a sports car or a nifty little hatchback, no one wants past credit problems to stand in the way of getting a car loan. Millions of Australians use car financing to afford their vehicle, but does a bad credit check have to mean you miss out?
The good news is that reputable car loan lenders do check your credit history when you apply for car finance, but that’s not the only thing they look at. At Rapid Finance, we believe that bad credit or financial difficulties in the past shouldn’t mean you’re held back from getting your dream car today, or in the future.
Even if you've been turned away by the banks, or have had problems with defaults in the past, we could still help - so don't give up. With decades of industry experience, our experts will do their best to find you the right bad credit loan. We partner with a diverse range of lenders and understand their requirements to increase your chances of getting a bad credit car loan.
How is borrowing power determined?
Your borrowing power is the highest amount that a lender is prepared to approve when you apply for a car loan. It is determined by:
- Your credit score and history
- Your level of income
- How much you spend each month
- Relationship status
- Number of dependants
These details give lenders a good idea of how much they can afford to lend to you and how much you can repay each month without facing financial hardship. Although having a higher credit score makes you eligible for more attractive and competitive lending rates, your entire financial situation is taken into account.
If you’re not sure about what your credit score is, request your free credit check today and discover your borrowing potential. Even with a bad credit score, you might be surprised at how much you can borrow.
What is a bad credit car loan?
Bad credit car loans are loan products specifically designed for people who have poor credit history or might find it difficult to obtain a loan from a traditional lender. Those who are in circumstances like poor financial stability, those working in casual or part-time jobs and even self-employed customers can apply for a bad credit car loan, as well as those who are ex-bankrupt or in a part 9 debt agreement.
If you’re discharged bankrupt, finding finance can be frustrating, but even if you’ve already received a few rejections, don’t worry. There’s a car loan out there for almost everyone – it’s just a matter of knowing where to look.
How are bad credit loans different to normal loans?
For those who have a bad credit check, a car loan maybe still possible. Whether you’ve been declined by a traditional lender due to poor credit history or aren’t in a financial position for a ‘normal’ car loan, Rapid Finance should be able to assist. Bad credit loans differ in the following ways:
- They often have higher interest rates (The higher the risk, the higher the rate)
- There may be restricted lend on the amount you can borrow, based on your overall circumstances
- Your loan term may be restricted
- Often, a cash deposit can assist to give the lender comfort with your application
- You may be charged slightly higher fees
- More documentation could be required depending on your circumstances
How can I apply for a bad credit car loan?
At Rapid Finance, our car loan experts will talk you through the entire process and ensure you get a good deal. We have helped thousands of customers who have bad credit – whether you want to buy from a dealer, a private sale or we assist you locating a vehicle inside our wholesale network, you choose!.
Whether you want a loan for a car, a home or something else, let us help you.
How can Rapid Finance help?
Our bad credit car loan application process is simple and can be completed in three easy steps, with fast application and approval. We offer solution-based finance. So, while other finance brokers sell you the loan they want, we ask what you want. Through our comprehensive assessment process, we help you find the finance solution that best matches your goals with your circumstances – even if your credit history isn’t perfect.
We’re all about second chances and have built a reputation of perfectly matching clients with lenders that suit them. As long as you’re honest about your circumstances, a bad credit check doesn’t have to stand in your way of getting a loan.
Ready to take the next step? Start your application online
*Every application is different – assessment criteria is based on the applicant's overall profile or circumstances and subject to verification checks and supporting documents. Rapid Finance will do everything it can to assist in finding a suitable loan product based on the applications requirements. Interest rates and fees vary depending on the individual applicant's circumstances and overall profile. Conditions apply.