Bad credit car finance

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No matter where you live, owning a car can make all the difference. It affords you the convenience of being able to get from A to B with ease. It gives you the freedom to get out and about. Owning a car means you can take road trips at your leisure and discount great places near and far. Plus, it can also save you plenty of time that comes when you are relying on public transport.

What is bad credit car finance?

Buying a car is a costly venture, and if you are already in position of bad credit, it can be even harder to take out a loan that can help you out. This is where bad credit car finance comes into the picture. The expert team at Bad Credit Loans can help you get the right kind of loan to help you out, so you can jump on the roads and get driving even faster. Here’s everything you needs to know about taking out bad credit car finance.

What Is Bad Credit Car Finance?

As the title suggest, bad credit car finance is a loan option for those with bad credit. It’s no secret that despite your best efforts, circumstances beyond your control can have a huge impact on your credit rating and leave you with a low credit score. This is the score that lenders use to determine whether or not you are reliable as a borrower. It stands to reason that if you have a low credit score, many companies aren’t likely to take a chance on you.

Banks and other traditional lenders are likely to turn you aware with a poor credit history.  Here at Bad Credit Loans, we understand that a low credit score does not necessarily reflect on your ability to pay back a loan. A bad credit car finance loan with us is a great way to get yourself back on the road sooner rather than later. We’re here to offer you a second chance to take out that loan you deserve, so you can enjoy the flexibility and convenience of owning your own set of wheels.

How to improve your chances of bad credit car finance approval

With Bad Credit Loans the solution is easy. If you are looking for bad credit car finance, you can simply go down the track of applying for a personal loan and then use these funds to fund your vehicle of choice. Here are some tips to help you secure the loan with bad credit:

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1. Check your credit score

It is always good to have an idea of your credit score and see if there are any changes you can make to boost it. The better your credit score, the higher the chances of taking out a loan.
Check your credit
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2. Save deposit

Having enough money saves up to make an initial upfront payment can go a long way to helping you get that lower interest rate and can also shorten the duration of your loan.
How to save money
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3. Talk to friends & family

If you have a friend or family member who is willing to co-sign on the loan with you, this will inspire confidence with the lender and once again can result in a lower interest rate.
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Car finance for bad credit history

There are many situations that are beyond our control that can crop up and leave us with bad credit history. This includes an accident, house repairs, or illness. These can all leave you behind on your repayments and result in negative listings made on your credit file. As a result, you find yourself with a low credit score which will affect your ability to take out a future loan. This is where a bad credit car finance loan comes in. Here are some of the things that can result in a negative listing on your credit file:

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High credit utilisation ratio

Refers to how much of your available credit you are using. If you are using more than 80% it suggests you are already stretched.

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Lack of credit diversity

The more types of credit you have the better it reflects on your credit score.

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Credit history

A longer credit history also reflects best on your credit score.

While the first step when it comes to taking out a car loan is to check your credit history and determine if there are ways you can improve it, often not much can be done immediately. It’s about changing habits to get rid of those negative listings over time, and adopting good financial management moving forward.

This is where a bad credit car finance loan is a beneficial option. It gives you a second chance to take out a loan and pay it back on time, building your credit history while also giving you the freedom to hit the open road.

Bad credit car loans Australia

If you don’t have the money to go out and purchase a car, then bad credit car loans are a great option. You want to negotiate a loan before you even step foot into a car dealership. This will allow you to know exactly how much money you have to spend and how much your repayments will be. You may have your sites set on a certain make or model, but not be able to afford the repayments on it. By securing the loan first, you can shop around and readjust your expectations to find a car that fits in perfectly with your new budget.

Here are some of the things you need to consider when it comes to taking our bad credit car finance:

Fixed or variable interest: Part of this process is also determining whether you are after a fixed rate or variable rate loan. The former means the interest is fixed for the term of the loan and doesn’t change. The latter means your interest rates will change. Therefore, they could end up higher meaning that you could pay off more in the long run.

Secured or unsecured loan: most car loans are secured loans. This means your car becomes the security for the loan. If you are unable to make the repayments, then the car is repossessed. With an unsecured loan, there is no security offered up, which means you won’t be able to borrow as much and the interest rates are generally higher.

Think beyond your loan

While a bad credit car finance loan may sound like a great idea, you also need to think beyond the loan and consider whether you will be able to make the additional payments that come with owning a car. These include:

Get car finance with Bad Credit Loans

If you’re looking for bad credit car finance loan, then chat with the experienced team at Bad Credit Loans. We believe everyone should get a second chance, which is why we offer personal loans to those with bad credit history. We offer flexible solutions that are tailored to your exact needs, with competitive interest rates to keep you on your feet financially. You simple can apply online, with a fast application process that will see the cash in your hands as quickly as possible. When the bank says no, Bad Credit Loans says yes, so come to us and let us help you out.