How To Get Bad Credit Car Loans For Pensioners

By Angela Monroe - November 19, 2018

Bad credit car loans for pensioners

Are you looking for a new or used car to get you from A to B? Maybe you’d like a vehicle to enjoy throughout retirement? It can be hard finding the right bad credit car loan for pensioners, but it’s important to know the terms that work best for you.

It’s useful to understand a little bit about what bad credit car loans are and whether bad credit car loans for pensioners are suitable. Doing your research will help you to make a suitable choice long term.

At Loans for People With Bad Credit, we work with people of all ages to help find them the right bad credit car loan. We’ll get you on the road as quickly and efficiently as possible, whatever your credit score may be.

Understanding bad credit car loans

When purchasing a car, many people take out a car loan or use car finance to pay for the vehicle. There are lots of different car loans available, but they can be limited if you have bad credit.

People have bad credit for a number of reasons including:

  • Previous unpaid loans
  • Defaults on payments for loans or bills
  • Multiple loan applications
  • Bankruptcy declared in financial history

Getting bad credit car loans for pensioners

As a pensioner, your credit rating has been built over decades so it’s unlikely to dramatically change or improve when you start looking for a car.

Unfortunately it can be tough to get a bad credit car loan as a pensioner, as lenders can be wary of whether the loan will be paid back in full.

If you have bad credit and are receiving a Centrelink pension, your car financier may ask about your financial assets, as means of paying back your bad credit car loan before they approve your loan.

At Loans for People With Bad Credit, we work with a variety of lenders who specialise in working with people with bad credit. We can direct you to the best lenders, giving you a range of different bad credit car loans to choose from.

Avoiding the traps

It can be a little harder to get a bad credit car loan when you’re a pensioner, but that doesn’t mean you should pay extremely high interest rates and additional fees. There are a few ways you can avoid falling into potential traps when looking for your bad credit car loan.

  • Be cautious: it’s important not to be taken in by lenders who claim ‘guaranteed car finance’ or ‘no credit check loans. These lenders tend to charge exceedingly high interest.
  • Use a loan specialist: a lender or broker who specialises in bad credit car loans will be able to find you a package with reasonable prices for the appropriate term.
  • Ask questions: if you think the interest rates are excessive or have too many additional fees, don’t be afraid to ask questions. There are many bad credit car loans for pensioners available and you shouldn’t feel you have to take the first one offered.
  • Avoid multiple applications: this is really important as any car loan applications you make will show up on your credit history. Multiple applications will raise red flags, indicating you’ve been rejected by other lenders.

Help yourself to get a bad credit car loan

You need to make sure you’re in the best possible financial situation when you apply for bad credit car loans for pensioners.

As a pensioner, you may not be able to show a proof of income, leading lender to look at your credit history and your record of paying back other loans and bills on time and in full. Always try and make sure that you have no outstanding debt at the time you’re applying for bad credit car loans.

Make sure that you are on the electoral register and that you can provide a stable proof of address.

Ask an expert for help by calling 1300 769 384. At Loans for People With Bad Credit, we’ll help you find the best bad credit car loans – saving you time, money and stress.

Angela Monroe
Angela Monroe is the Community Manager at The Positive Group, specialising in giving people the information that they need when they need it, and putting you on the path to a fair financial future. She has 8 years of experience in helping Australians find the right finance solutions, and regularly contributes articles to empower Australians with the knowledge they need to become financially healthy.


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