Bad credit car loans are potentially available to consumers looking for car finance but with poor credit history. Apply up to $15,000 now.
What are bad credit car loans?
As the name suggests, they are personal loans available to borrowers with poor credit, designed to cover car-related expenses. Specifically, this could include:
- Purchasing a vehicle
- Covering registration
- Repairing a vehicle
- Any other vehicle-related cost
- 4×4 accessories
Moreover, you could even use your personal loan to purchase things like a jet ski or a motorcycle.
If in the past, you have defaulted on credit, declared bankruptcy or entered into a Part IX Debt Agreement, you may be considered risky to traditional lenders. As a result, car loans bad credit may be an option. Learn more about secured bad credit personal loan here. Learn more about loan against my car that is paid off here. Learn more about access your pay early Australia here.
Monzi – Australia wide
Our business model is 100% online. This means no paperwork, no phone calls and no trips to a physical branch. However, being 100% online also means we can help borrowers from any corner of Australia. Learn more about personal loans bad credit instant approval here.
Below are some examples of the types of loans our past customers went on to be approved for with a lender:
| Bad credit car loan Australia | Amount (AUD) | Approved |
|---|---|---|
| Bad credit car loan Brisbane | $2,500 | ✓ |
| Sydney bad credit car loan | $4,000 | ✓ |
| Car loans Adelaide bad credit | $4,600 | ✓ |
| Bad credit car loan Perth | $8,000 | ✓ |
| Bad credit NSW car loans | $15,000 | ✓ |
Please note, the above examples may not necessarily reflect the loan amount you may eventually be offered.
How can Monzi help with bad credit car loan?
We are a lender-finder service that could potentially point you in the right direction.
Over time, we have built up a strong network of trusted credit providers. Moreover, these lenders may be able to offer fast money loans for consumers with all sorts of credit histories. Additionally, our lenders could potentially offer up to $15,000!
Monzi, in short, saves you the hassle of applying with multiple different lenders online. Instead, lodge one application on our website, and we’ll try our best to match you with a potential credit provider.
What bad credit car loan can I apply for?
Our network of lenders can potentially offer personal loans ranging from $2,100 to $15,000. Within this, however, are three broad categories of personal loans.
Firstly, small personal loans are available from $2,100 to $2,000. These loans are unsecured, meaning you will not need to own an existing vehicle to apply. Generally, the repayment term for these small loans is 12 months.
Medium personal loans, on the other hand, range from $2,100 to $4,600. Unlike small cash loans, medium personal loans are secured. Therefore you will need to already own a vehicle to use as security against the loan. Repayment terms may range from 13 to 24 months. This, however, may vary between lenders.
Finally, large personal loans are potentially available from $15,000 to $15,000. These loans are also secured, and therefore you will need to attach an asset as collateral. In addition, the repayment terms may also range from 13 to 24 months, depending on the lender.
Can you guarantee me a bad credit car loan?
Unfortunately, no; credit providers should never be offering bad credit car loans guaranteed approval. In fact, any lender offering guaranteed approval should be treated with caution.
In short, there is a chance these lenders may be a scam. After all, Australian law requires all lenders to lend money responsibly.
Responsible lending, specifically, revolves around making sure a loan product is suitable for the consumer. A loan product is considered suitable for a consumer if:
- The loan meets the borrower’s needs and objectives.
- The borrower is able to afford repayments without undergoing significant hardship.
So it stands to reason, lending responsibly and offering guaranteed approval loans are mutually exclusive. As a result, if you run into any lenders promising the world, be very cautious.
As the age-old adage goes: if it sounds too good to be true, it probably is.
Before applying for bad credit car loans – can I improve my credit score?
You may not need to apply for car finance for bad credit history if you improve your credit score. The good news is anybody is able to improve their credit score.
In short, the information in your credit file determines your credit score. As a result, you can improve your score by showing good borrowing habits. Specifically, you can improve your credit score by:
- Making your loan repayments on time.
- Paying off utility bills as well as rent on time.
- Limiting your applications for new credit.
- Consolidating multiple loans/credit card debts.
- Paying credit card off in full each month.
Admittedly, your score will not improve overnight. However, anybody can improve their score, it may just take a bit of time and hard work.
How long do bad credit listings remain on my credit report?
In short, it depends.
Listings typically remain on your credit report for a period of between two and seven years. However, the nature of the listings will determine the exact length.
On the short end, your repayment history typically only remain for two years. On the longer end, listings such as hard credit inquiries, debt settlements, defaults and bankruptcies may stay for between five and seven years.
As a result, it’s apparent why bad credit can be challenging to overcome. As your mistakes can remain for up to seven years, it takes time and discipline for them to be removed and replaced.
Does a bad credit car loan build your credit?
If you take out a used car loan or any type of cash loan, then it may build your credit. However, this depends on how you manage your loan.
On the one hand, if you borrow what you can afford to repay and make all your repayments on time, then your credit score may improve. This is because you will be building a strong and reliable repayment history.
On the other hand, if you take out an unsuitable loan, miss repayments or even default then your credit score may take a hit. Moreover, you may find it difficult to access car loans again in the future.
As a result, while a car loan can potentially build your credit score, it has the potential to have a negative impact too. It simply comes down to how you manage your loan. So, before agreeing to any loan, ensure that it is suitable and affordable for your circumstances.
What about car loans for pensioners with bad credit?
Pensioners can definitely use Monzi to apply to match with a lender. After all, age is just a number right?
So, if you’re looking for a new car, or a caravan to join the grey nomads, you could consider Monzi. We’ll do our best to match you with a potential credit provider.
Keep in mind, however, you will need to show you are earning a regular and consistent income.
How much deposit do I need to buy a car?
Unlike purchasing a house, you may not always need to provide a deposit when purchasing a car.
If a lender does demand a deposit, keep in mind it is generally not a set amount, so aim to pay as little as possible. In addition, if you’re purchasing privately, get your deposit agreement in writing.
Not only is it good to have a record of all transactions, but you may also be able to refund the deposit if your finance application falls through or if you are not satisfied with the car inspection.
How can I get a car loan with bad credit Australia?
Want to know one quick and easy way to access credit online?
Apply with Monzi!
Our lender-finder service can make it simple to connect with a range of great credit providers who may be willing to offer bad credit car loan. Best of all, you may be able to borrow amounts up to $15,000 with repayment terms ranging from 12 to 24 months.
All it takes is one application. Apply today and from there, we’ll scan our network to try and find an available lender who is willing to assess your application.
However, keep in mind that approval is not certain. Moreover, we cannot say if your lender will offer loans for bad credit that you can use to purchase a vehicle.
Car loans for bad credit instant approval
Need a new vehicle ASAP?
New car loans with instant approval could seem like the right choice for you. Just apply and lenders will waste no time assessing your application so that you can receive an outcome before you know it. If everything goes to plan, you could even receive your cash the same day.
However, keep in mind that while instant approval sounds wonderful, it’s not quite possible. This is because lenders must assess all applications. As a result, there will always be some processing time involved. Moreover, approval is not certain.
As a result, while a quick or fast outcome may be possible, instant approval typically won’t be.
Bad credit car loan interest rates
All bad credit car loan will come with a car loan interest rate. Typically, it will be expressed as an annual percentage and it will determine the amount that you must repay on top of the principal amount that you borrow.
As a guide, a lower rate is usually better. That way, your interest payment will be smaller meaning that you can potentially pay off your principal balance sooner.
If you are looking for a lower rate, then there are potentially a few things you can do. Firstly, if you secure your loan then lenders may offer lower rates given that there is less risk from their perspective. In addition to this, if you can develop a strong credit history, then you may be rewarded as you will be less of a risk.
Having said this, your lender will ultimately determine your rate. So, read your loan contract to ensure that you are aware of what you must pay.
Why was I offered a loan that is different from the one I applied for?
In short, lenders will assess your application to determine if the car loan you’ve applied for is suitable for your circumstances. With this, they can modify or change the terms of your loan before it is offered to you. As a result, your lender may offer a smaller loan amount or a different repayment term.
With this, if you are unhappy with the loan you’ve been offered, then you are free to decline it. Just inform your lender that you do not wish to proceed and your loan will not progress.
Ready to buy a car? Consider the following
Unfortunately, cars cost a lot more than just their purchase price. Specifically, consumers will still need to cover all the costs associated with owning and maintaining a vehicle. For example, you may need to cover registration, as well as:
- Insurance
- Roadside assistance
- Fuel
- Repairs and maintenance
- Tolls
To give you a better idea, you can download ASIC’s MoneySmart Cars app. This free app can help consumers figure out the true cost of buying and running a car.
Finally, always check the Australian Government’s Personal Property Securities Register (PPSR) before buying a used car. Here, you can make sure your car won’t be repossessed if the seller still owes money on it.
