Bad Credit Car Loans for Single Parents

By Angela Monroe - March 20, 2018

Most people who have bad credit can get car financing by using their spouse as a guarantor. In most cases, loan applications are approved quickly, provided that the guarantor has a good credit profile.

However, acquiring car loans for single parents is a different case altogether. If you’re a single parent with a bad credit profile, then many lenders will be apprehensive about offering you car financing. But there are some ways you can acquire bad credit car loans, even if you are a single parent.

Problems that single parents face when getting a loan

Big banks in Australia have a very rigid set of criteria when it comes to offering car financing. Moreover, banks don’t consider the different circumstances that an individual may be in.

Single mothers and single parents usually have casual or irregular employment because they need time to raise their children. This, combined with debts such as education costs or hospital costs often results in single parents having bad credit. If single parents don’t have a second income, many lenders may dismiss loan applications outright.

Is it possible for a single parent to get a bad credit car loan?

Yes. You’ll be glad to know that it is possible for single parents to get a bad credit car loan. While it can be difficult for a parent who is the sole earner to acquire car financing, it is possible.

Some of the factors which may affect your ability to get a bad credit car loan as a single parent are:

  • Your existing debt including your credit card debt
  • Casual or irregular employment
  • Parenting payments or Centrelink benefits

As long as you can prove to lenders that your existing debt is low, that you are receiving Centrelink benefits or parenting payments, and that you have some form of employment, it should be possible for you to acquire a car loan on bad credit.

How can single parents get bad credit car loans?

As a single parent, there are a number of things you need to do to get a bad credit car loan. These include consolidating your existing debts, ensuring that your financial statements are correct and showing viable income. You can also consider making use of professional car finance consultants to improve the chances of your loan getting accepted.

How can Loans for People with Bad Credit help you with your loan?

At Loans for People with Bad Credit, we’re not just any other car finance broker. We’re car financing specialists who can offer you the best support and guidance.

We work closely with our clients to understand their financial condition and then offer the best solution. While we can help you focus on your financial strengths and get your bank statements in order, we also have access to numerous lenders.

When you choose us, we’ll connect you with the best lender for your needs. We even negotiate with lenders on your behalf to get your loan application approved.

An example of how we’ve helped single parents acquire car loans

We’ve successfully helped many single mothers and single fathers in Australia obtain bad credit car loans. Recently, we helped Olivia Brown, a 31-year-old single mother with three kids acquire a car loan in Melbourne Outer East.

Olivia worked as a part-time saleswoman working only a few days a week at a small retail store. While she receives child support, this is not enough to give her kids the life she wants. She found work elsewhere with better pay, but it was far away from her home. She needed car financing but was unsure whether her application would be approved.

When Olivia approached us, our helpful consultants got to work immediately. We found a couple of errors in her past bank statements which we got corrected. We also noticed that she received certain Centrelink benefits apart from her child payment support. Using all this information, we connected Olivia to the right lender. Today, Olivia drives her new car to her new workplace, and her life is looking up.

Why we’re the right choice for you

There are several car finance brokers in Australia. When you’re looking at bad credit car loans for single parents, just any car finance broker won’t do. You need the help of expert consultants who specialise in bad credit car loans.

For this, Loans for People with Bad Credit is a perfect choice. When you choose us, we’ll ensure that your loan application has the best chance of being approved. While we have access to several lenders, we are also skilled at focusing on your financial strengths. We can help you build a compelling case to finance your car and also negotiate on your behalf.

Some things to know about car loans on bad credit

There are some differences between normal car loans and bad credit car loans which you should be aware of. Firstly, the interest rates for normal car loans range between 5 and 8 per cent in Australia. However, bad credit car loans for single parents will attract higher interest rates.

Also, the interest on car loans for single parents depends on the loan duration. A longer repayment duration means that you will be paying more to the lender in terms of interest.

Finally, the criteria for offering a car loan differs from one lender to another. You may not be aware which lender to approach for your situation. That’s why you should talk to professional car finance consultants who can help you approach the right lender.

Apply for car loans for single parents today!

If you’re a single parent with bad credit, it is possible for you to be approved for a car loan. Several lenders will be willing to offer you a loan provided that you can prove that your current financial condition is stable, that you have a viable income, and that your debts are consolidated.

And, to ensure that your loan application does not get rejected, talk to a professional car finance consultant today!

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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