Bad Credit Finance – The Monzi Guide

With bad credit finance you can potentially still access the loans and finance you need. Made a few credit mistakes in your past? Find understanding lenders online today. Keen to know more? Read on and Monzi will break down everything that you need to know. Let’s go.

Please note, certain ideas and products presented in this article may not be offered by Monzi nor the lenders we work with. This article presents only general information. Consider seeking professional financial, taxation, legal or other advice to check how the information and ideas presented on this website relate to your unique circumstances.

Bad credit finance

While we’d all love to have perfect credit, unfortunately that’s just not quite a reality. If you do have bad credit then you’re certainly not alone. There are plenty of everyday Aussies in the same boat.

While in the past, this would have made it extremely difficult to access credit, things are a little different now. These days, there is an abundance of understanding lenders who may offer finance options to consumers with less-than-perfect history. As a result, if you find yourself in a financial bind, you can still potentially borrow the cash you need.

With this, it’s all about a change in perspective. While lenders may put your credit under the microscope, that’s not the only part of your application. They’ll examine your budget too in order to determine if the proposed repayments would be affordable for you.

As a result, if you’ve worked yourself into a secure financial position then a few past mistakes might not stand in your way of accessing credit. However, approval is subject to the outcome of an assessment.

Bad credit car finance

Cars aren’t just a luxury, for most of us they’re a necessity. Whether you need it to get to work or even to get the kids to school, your life is often one hundred times harder without a vehicle.

Luckily, if you need a new vehicle, there are finance options available to you. Moreover, if you’ve got bad credit, it may not be an issue.

With bad credit car finance you can potentially get the cash you need to cover the purchase of your new vehicle. From there, you’ll simply need to repay the balance of your loan via a series of even, regular repayments spread out over a period of months or years.

Car finance bad credit centrelink

Receiving Centrelink benefit payments may not stop you accessing credit.

Whether these payments make up some or all of your income, there may be some lenders who will still be willing to consider your application. In other words, you won’t be treated any differently just because you receive benefit payments. You’ll just need to meet the lender’s qualifying criteria in order to be approved.

However, in saying this, it’s worth understanding that this won’t be true with all lenders. Individuals policies vary between lenders meaning while some may view benefit payments as legitimate income others will not. Moreover, certain payment types may be viewed differently too.

As a result, credit availability and your eligibility may depend on the lender that you are dealing with.

Bad credit car finance Brisbane

Are you a resident of the River City and looking to purchase a new vehicle?

Great news! There may be a range of lenders online who might be willing to offer bad credit car finance. If you are able to show that you’re in a secure financial position then a few credit mistakes in your past may not be an issue.

Before you know it, you could be heading off on a day trip to the Gold Coast’s beautiful beaches or heading north to explore the natural beauty of the Sunshine Coast Hinterland.

Bad credit business finance

Business loans are just like personal loans except they’re for your business. Simple, right?

With this, there may be some business lenders willing to offer bad credit finance too. In assessing your business’ suitability for credit, lenders typically look at the five C’s.

  • Character: reflects your business’ credit history.
  • Capital: what assets do you hold?
  • Capacity: will you have the funds to cover your repayments?
  • Conditions: the features of the loan (e.g. amount and term).
  • Collateral: what assets could you use as security?

Based on an assessment of these factors, lenders can determine your outcome.

Car finance for pensioners with bad credit

Whether you receive the aged pension or the disability support finance, money is often tight. If you need a vehicle, scratching together the funds to make this a reality may be almost impossible.

However, through car finance for pensioners, purchasing a new vehicle may be more accessible then you thought. Lenders offering these loans may be more lenient in their terms allowing you to meet the eligibility requirements.

Having said this, lenders retain the right to offer these loans at their discretion. Moreover, as a pensioner you will still need to display the capacity to repay any money that you borrow.

Car finance Sydney bad credit

As Australia’s largest city, Sydney is home to a large and diverse population. While we all may have different financial circumstances, bad credit is something that can affect us all.

Luckily for the many Sydney residents with bad credit, there are finance options available to you. This is also true if you’re looking to purchase a new vehicle.

Through bad credit car finance, Sydney residents may be able to access the cash they need to buy a brand new set of wheels.

In saying this, all applications are subject to an assessment. Lenders will assess not only your credit history but your income and expenses too in order to determine if the loan you’ve applied for is right for your circumstances.

Bad credit finance two people sitting on wall at sunset

What is the lowest credit score to buy a car?

In short, we are unable to say.

While many lenders may claim to offer car finance with bad credit rating, exact requirements do vary. In other words, some lenders may be willing to consider applicants with lower credit scores than other lenders would be willing to accept.

As a result, the availability of bad credit finance and your eligibility may depend on the lender that you are dealing with. As a general rule, the better your credit score, the higher the likelihood that your application will be approved. Although, there are a range of factors that lenders will consider to determine if you are suitable for credit.

What is the easiest loan to get with bad credit?

In short, Monzi cannot say.

However, there may be a number of easy lenders who may have eligibility criteria that aren’t quite as traditional lenders. With this, they may be willing to offer credit to individuals with less than perfect circumstances. This could make credit accessible to those with bad credit, low income earners and even individuals receiving benefit payments.

In saying this, while these lenders may have more relaxed criteria, approval is not certain. Lenders will assess your financial situation to determine if you are suitable for credit (i.e. can you afford the associated repayments).

Bad credit car finance no deposit: comparing loans

With plenty of lenders available in both the online and traditional marketplace, you’re spoilt for choice. So, make the most of it. Do your research and aim to find a lender that can offer a loan that works for your circumstances.

If you’re not sure where to begin, consider comparing loans based on the following:

  • Interest rates and fees: a lower interest rate is usually better.
  • Comparison rate: rolls your interest rate and fees into one easy-to-understand figure that represents your total loan costs.
  • How much can you borrow?
  • Does the lender offer a range of repayment terms?
  • Who is the lender: check their user reviews. Do they have a proven track record of positive user experiences?

For more details on comparing loans and car loans in general, visit the Australian Government’s free Moneysmart website.

Bad credit car finance Melbourne

As Australia’s sport and culture capital, Melbourne is undoubtedly one of the top places to live in this great country. Throw in great food and coffee and it’s almost perfect.

However, in spite of all these benefits, Melbourne residents aren’t immune to bad credit. Luckily, there are plenty of online lenders who are understanding of this.

If you’ve got bad credit and apply for a car loan, then lenders will conduct an assessment. While your bad credit will often be considered, lenders will usually look at the bigger picture. They’ll assess your income and expenses too in order to determine what might be affordable for you.

If you’re in a secure finance situation then you may still be approved even with a few credit issues in your past. If everything goes to plan, you could be travelling down the Great Ocean Road in your new vehicle before you know it.

Can I access bike finance with bad credit?

A new car isn’t the only new set of wheels you can get. You can potentially access bad credit bike finance too through a range of understanding, online lenders.

So, whether you’re a serious cyclist or just looking for a new activity to improve your fitness, there may be credit available to assist you with your purchase. If you apply today, you could be rolling through the streets on your new bike before you know it.

Bad credit finance: what expenses can I cover?

While we’ve spent plenty of time on car finance with bad credit, there are so many other expenses that you can cover too through bad credit finance.

In short, as long as it’s a legitimate personal expense then you may be eligible for bad credit finance.

As a guide, common expenses include:

  • Car repairs and servicing
  • Household maintenance, repairs or improvements
  • Holiday and travel loans
  • New appliances and technology
  • Vet and medical bills
  • Rental bond.

How can I get a car loan with bad credit Australia?

One simple way could be to apply with Monzi. In short, our lender-finder service can potentially connect you with lenders offering car loans from $5,000 to $30,000. Best of all, repayment terms may range from two to five years.

All you need to do is submit one simple car loan application using our loan slider. From there, our automated system will take over and will attempt to pair you with an available lender who can potentially offer the car loans you require.

One thing to keep in mind is that while these lenders may consider applicants seek car finance for bad credit history, approval is not certain. Lenders will assess your application to determine your suitability for credit. From there, you will receive an outcome.

Finance for bad credit through Monzi

At Monzi, we don’t just specialise in car loans. We can potentially help you access personal loans from $300 to $10,000 too. In short, our lender-finder service could be the simple and convenient way to access credit providers online.

While you could spend your time combing through search results trying to find a lender, Monzi may make it easy. As with car finance bad credit, all you need to do is submit one simple application using our loan slider at the top of the page.

From there, our automated system will scan our network to try and find an available lender willing to consider your application. Best of all, we work with a number of understanding lenders who may be willing to consider bad credit applicants.

While approval isn’t certain, they’ll consider your financial situation as a whole to determine if the loan you’ve applied for is suitable for your circumstances. In other words, you credit history won’t necessarily be the be-all and end-all of your application.

Am I eligible to apply with Monzi?

While we aim to help as many Aussies as possible, there are a few boxes that you must check before you apply with Monzi. No need to worry though, they’re quite simple. Check them out:

  • At least 18 years old
  • Australian citizen or permanent resident
  • Have a current email address and contact number
  • Hold an online bank account with at least three months of transaction history.

How do I apply?

So, now that you’re eligible, you can move onto applying. In short, Monzi has made it easy. We’ve refined our process down into a few quick steps so that you can get on with your day sooner.

To apply, all you need to do is:

  1. Select your ideal loan amount and repayment term.
  2. Provide the necessary person and finance details then submit your application.
  3. Wait while our automated system attempts to pair you with an available lender.
  4. Stay by the phone because we’ll be in touch via text as soon as we have an outcome for you. If our search is a success then your lender will be in contact to begin the assessment process.

Apply today

The below table displays the loans potentially available through Monzi’s network of lenders.

Small personal loan$300 to $2,000Over 12 months
Medium personal loan$2,001 to $4,60013 to 24 months
Large personal loan$5,000 to $10,00013 to 24 months

Keen to access bad credit finance from $300 to $10,000? Scroll up and apply now using Monzi’s loan slider. Let’s go.

Factor In

Costs

Two credit cards
Two credit cards

You won't use a penny to apply for our lender-finding service, but here's some costs you could expect from a lender

Loan amount

$300 - $2,000

Terms

12 months

Costs

20% upfront establishment fee

+ 4% monthly fee

Example

Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.

Under the current legislation, most small personal loan providers don’t charge an annual interest rate (you’ll know this as an APR) %. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The maximum comparison rate on loans between $300 and $2000 is 199.43%. This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate

Loan amount

$2,001 - $4,600

Terms

13 months

24 months

Costs

48% annual percantage rate

67.41% comparison rate p.a.

Example

Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principle Amount) + $400 (Establishment Fee) + $1,379.06 (reducing interest) = $4,779.06 total repayable over 18 months with weekly installments of $61.27.

The Interest Rate for Secured Medium Loans is 48%. The Typical Comparison Rate is 67.41% p.a. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.

Loan amount

$5,000 - $10,000

Terms

13 months

24 months

Costs

21.24% annual percantage rate

48% comparison rate p.a.

Example

Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principle Amount) + $5,577.12 (Interest) = $15,577.12 total repayable over 24 months with weekly installments of $149.78.

The Interest Rate for Secured Large Amount Loans is 48%. Maximum Comparison Rate is 48% p.a. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.