Bad Credit Car Loans – Frequently Asked Questions

Your questions answered

If you have bad credit, you might be concerned about how to go about getting a car loan. You may have been rejected by previous lenders or simply find the whole bad credit car loan process overwhelming.

Don’t panic – we want to help you to find the best car loan for you whatever your credit score. We’ve got years of experience working with people with bad credit and we believe that everyone deserves a second chance, especially when it comes to getting on the road.

Take a look at some of the most frequently asked questions about bad credit car loans. If you have any other queries or concerns, make sure you contact us today so that we can help you.

Do I have bad credit?

Most people will know if they have bad credit, but if you’re applying for a car loan and you don’t know your credit score, it’s worth finding out.

It’s free and easy to find out your credit score and it won’t take you long. If you have credit lower than 580, you’ll be classified as needing a bad credit car loan. The reasons for your bad credit could range from missing previous repayments on loans to a history of bankruptcy or simply having no current credit record.

Get your free credit check today.

Can I get a bad credit loan?

Generally, we can help most people to get a bad credit loan regardless of their financial history and their credit score. We have helped many people who have been turned down numerous times by other lenders or financial institutions.

Whether you can get a bad credit loan will depend on your circumstances as well as the reasons for your bad credit.

Speak to us today to find out if we can help you. There may be some instances where we recommend that you contact us at a later date or when your credit score has recovered slightly, but we can generally help people get the car loan they need to get back on the road.

How do I apply for a bad credit car loan?

The most important thing is to find the right lender – and we can help you do this. It’s essential that you don’t simply go online and make numerous applications as this will be seen by lenders and it’ll raise alarm bells to them.

Use our Quick Quote form to understand what position you’ll be in when it comes to applying for a bad credit loan, then let us guide you through the process from there.

When applying for a bad credit loan, it’s essential that you aim to be as honest and accurate with information as possible. Withholding information that you think will be damaging could result in your being rejected for loans and damaging your credit history long term.

Do I need insurance when applying for a bad credit car loan?

This will generally depend on the individual lender who is providing your bad credit car loan. Some lenders will not give you a car loan without comprehensive insurance.

The reason for this is that people with bad credit are seen by lenders as higher risk, and there is a concern that if they are hit with a damage claim, they may struggle to make their repayments on the loan.

How long does it take to get approval for a bad credit car loan?

Once you’ve got pre-approval for a bad credit car loan, things can often move pretty quickly. The pre-approval can take as little as five minutes of your time.

You’ll then receive a call within 24 hours from one of our bad credit lending managers. Generally, you can expect the full loan process to take from three to five working days – that’s under a week to get you approved for the car loan you’ve been waiting for!

Should I apply for lots of car loans at once?

No, this is really important – and it’ll help us to get your bad credit car loan approved if you ensure that you keep any car loan applications to a minimum.

By making multiple applications, you’ll be raising alarm bells for potential lenders who will be able to see this when they are in the process of approving you for a car loan.

Although it seems easy to make numerous car loan applications online, leave it to the experts and let us work on your behalf.

How old can the car be when I use a bad credit car loan?

You might be tempted to go for the cheapest used car possible if finances are tight and you’re using a bad credit car loan. However, buying a used car with a bad credit car loan could see you getting much higher interest rates.

This is because lenders will see a used car as having less resale value – something which is important to them in case you default on the loan and they repossess the vehicle. A newer car poses much less risk to them, so you’re likely to get a bad credit car loan with better rates.

Is the interest rate fixed or variable?

This is something that will depend on your personal circumstances.

Some people may be in a very tight position financially and if you’re trying to improve your bad credit rating and want to budget exactly each month, a fixed interest rate will be the most helpful. You’ll know exactly how much will be leaving your bank account each month and the rate will not change.

If you have a little more flexibility financially or want to be able to take advantage of varying rates, you may want to opt for a variable interest rate. Just be aware that rates can go up as well as down, so think carefully before you commit.

Can you do other types of loans?

We provide a full range of bad credit loan services. No matter what you need, we want to hear from you and we’ve got years of experience working with people who have bad credit as well as access to a wide range of appropriate lenders.

Some of the loans we can offer include:

Can you help if I have been discharged from bankruptcy?

Yes, we have previously helped people to get a bad credit car loan even if they have been discharged from bankruptcy.

This is a serious blot on your financial history which many lenders will use as a reason not to offer you a car loan. However, we believe that everyone deserves a second chance. Although we may recommend that you time your application to ensure it is not immediately after your bankruptcy, we will generally be able to offer help.

Get started with a bad credit car loan

If we haven’t answered all your questions, then get in touch with us and we will be happy to help. If you’re ready to get your car loan application started, we can help. Find out how we can help you get the right car loan for you, call us on 1300 769 384.