Have you found yourself in a position where you’re wondering can you get a car loan with bad credit? If so, you’re not alone. However, a bad credit history doesn’t have to be the end of the world.
You can definitely still get a car loan with bad credit. In fact, not only can you get approved, but with the right company, you can even get a great rate! In this article, we will take a look at how you can do it.
We will also take a look at potential obstacles and walk you through the advantages and disadvantages. Let’s go!
Can You Get a Car Loan with Bad Credit?
The short answer is yes. You can certainly get a car loan with bad credit. Many people think that they have bad credit due to missing a payment or not getting approved for a home loan once. However, most of the time they actually don’t.
They may even have good credit! In fact, there are a variety of reasons you may not have been approved in the past. These could be reasons such as a low income or not having a deposit.
The good news is just because a big bank has rejected you, it doesn’t mean you’ll get rejected elsewhere. The 4 big banks are quite strict. They will often knock back people that other lenders would be happy to lend to.
The 4 big banks are:
- NAB
- Commonwealth
- ANZ
- Westpac
How to Get Prepared
Wondering can you get a car loan with bad credit? Of course, you can, you just need to be prepared. If you actually do have a bad credit rating, you can still get car finance.
You will simply need to take the time to understand what you need and how to apply. All of the information you receive will help your application. Supporting documents can also help.
Supporting documents can include:
- Payslips
- Bank statements
- Credit card statements
- Evidence of benefit payment eligibility
Being able to demonstrate good financial habits such as putting money into savings regularly can help. It will help to indicate that you have the required financial discipline.
The Application and Loan Approval Process
When it comes to the application and loan process, you need to know what lenders look for. When asking can you get a car loan with bad credit, you need to know your credit score first. Then, if you have bad credit, you need to find a lender who offers bad credit financing.
When your application gets assessed, the lender will consider many factors. These factors include:
- Your current debt
- Your credit history
- Your previous credit issues
- The loan amounts
- Your income vs expenses
This will help them to assess your financial situation. They will determine if you can cover the monthly payment. This is important to know when wondering can you get a car loan with bad credit.
The Advantages and Disadvantages of Bad Credit Car Loans
Let’s take a look at the advantages and disadvantages of bad credit car loans.
Advantages
When it comes to the advantages of bad credit car loans, there are two key advantages.
- The obvious reason is that you will get a new car. You’re definitely not out of options just because you have bad credit.
- The next advantage is that you will have far more options than you think. There are lenders out there whose sole purpose is to help people in your financial situation. The team will be able to help you out and be flexible.
Disadvantages
The main downside of a bad credit car loan is that they often attract a far higher interest rate. This means that you will be paying higher monthly repayments. Depending on which lender you choose, you may need to put up more collateral.
However, there are a lot of good options available you should be aware of. So, don’t let the disadvantages get you down too much. While there are disadvantages, the advantages often outweigh them depending on your situation.
These disadvantages don’t change the answer to can you get a car loan with bad credit.
Can You Get a Car Loan with Bad Credit Answered
Bad Credit Loans Australia have offered thousands of people the opportunity for a car loan. Yes, even with bad credit! Our team could help you to get approved in no time at all on your own terms.
We have access to all the resources available to get you the best rates on your bad credit car loan as possible.
If you are looking to take out a car loan with bad credit, get in touch with Bad Credit Loans today and apply. Our loan process is as seamless as possible to ensure that you can get the desired result in an efficient manner. If you’re ready to enjoy some new wheels, this is the time to do it!
