What is Cheap Financing For Cars With Bad Credit?

By Angela Monroe - August 24, 2018

Understanding cheap financing for cars when you have bad credit

If you’re looking for cheap bad credit loans, it’s good to understand what’s a good deal and what’s simply too good to be true.

We understand that you want to get on the road as quickly as possible and it can be tempting to take the first car finance option you can, but make sure you act with caution. We can help you understand your options for bad credit car loans.

What is cheap financing for cars?

Generally, cheap financing relates to money that can be borrowed ‘cheaply’ – usually because it has a lower interest rate. In terms of loans for bad credit, cheap financing won’t be as cheap as for people with a good credit history but you shouldn’t accept exorbitant interest rates either.

Don’t be fooled by all types of cheap financing for cars. While they may seem like a great option for you at first glance, they are often simply too good to be true. For more advice, you should talk to the experts at Loans For People With Bad Credit.

Cheap financing options

There are several types of cheap financing options but the most common include:

Credit cards

There are so many credit cards out there, and many of them offer a solution to those looking for cheap financing for cars with bad credit. However, it’s essential that before using any new credit card you are fully aware of the terms and conditions and the rates of interest you’ll be expected to pay. You should never use a credit card for cheap financing if you aren’t certain that you’ll be able to pay back what you spend.

Secured car loans

With a secured car loan, the car itself acts as security for the loan. This means that if you fail to pay back your loan, the lender will be able to repossess and sell the car. For people with bad credit, secured car loans generally have interest rates starting from 6.49%.

Unsecured car loans

This simply means that the lender doesn’t use the car as security for the loan. Generally, this will mean that interest rates and fees will be higher, so you could end up paying a lot more in the long-term.

Buying a car with bad credit

If you’re looking at cheap financing to buy a car with bad credit, there are a few things you should be aware of.

1. Find the right lender

You need to make sure that you are working with lenders who specialise in bad credit loans. Many banks and lenders will simply reject you when they see your credit history, or lack of credit history. Instead, find the right lender for you by speaking to us and taking advantage of our years of experience and wide access to lenders.

2. Limit your finance applications

Cheap financing is everywhere online, and it’s tempting to apply to numerous cheap financing providers if you’re in a rush to purchase your car. Be aware that lenders can check how many credit applications you have made and multiple attempts will raise red flags to them.

3. Get expert advice

It’s always best to ask the experts. Not only can we save you time and money, but we can also give you peace of mind that you’re choosing the right option for you. We’ve had years of experience working with a huge variety of lenders and can help you to avoid some of the pitfalls of cheap bad credit loans.

What to do next

Cheap financing options can certainly work for some people in some situations. Just be careful if you have bad credit already that you’re not agreeing to anything that could put you in a position of stretching yourself financially and affecting your future chances of borrowing.

We can talk you through the options that could work best for you when you’re looking for cheap bad credit loans, and we’ll tell you if that deal you’re considering is really too good to be true!

Get expert help with your bad credit car loan 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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