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Bad Credit Car loans 

Been refused credit? Don't worry we've got access to specialist lenders waiting to help.

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Car loan reviews from Ausloans customers just like you 

Read what real customers say about the Ausloans car loan experience then continue below to learn the best way to secure finance for your dream vehicle. Our team are experts in auto finance and are here to help you get the best deal possible.

What is a bad credit car loan? 

Everything you need to know to about bad credit car loans and how to get one

Bad credit history car loans explained 

A bad credit car loans is a broad term used to describe a range of loan products designed to meet the needs of people with poor credit histories or others, who, due to circumstances, may find it difficult to access finance for a car from a traditional lender, like a bank.

Bad credit car loan products are ideally suited not only to borrowers with low credit scores and/or defaults, but also people with little to no credit history, part time and casual workers, the self employed and customers who are ex-bankrupt or in a Part IX debt agreement. Bad credit doesn't have to be a barrier to car finance and we are experts at helping people with credit issues.

Got credit problems? We can help

Think you've got bad credit but not sure? Our experience shows that most people who think thy have bad credit actually don't and the best way to find out is to compete our 2 minute finance app. On completion we can advise of your credit status and help you secure the right loan for your circumstances.  If you do have bad credit don't stress.  Since 2008 Ausloans has been helping Australians overcome credit issues with lender products designed  to get you behind the wheel of a car when you have bad credit. 

Our professional brokerage team understands your pain and are experts in securing financing solutions for people with less than favorable credit histories.  With access to a large pool of specialist, bad credit car loan lenders we have solutions to get you on the road.  Let us help you turn your bad credit history past into a good credit history future. 

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How are bad credit car loans different?

As bad credit car loans are designed for people who have been declined by lenders because of credit defaults, judgements,  bankruptcy or part IX debt agreements, these types of loans come with a range of borrower asset purchase restrictions and limits on the type of vehicles that can be purchased. While each lender is different here are 6 common characteristics of a bad credit car loan. Before deciding that a bad credit car loan is not right for you make sure you read our section on why you should consider taking a bad credit car loan, even if the interest rate is higher than you anticipated. 

Higher Interest Rates

Bad credit car loans typically have higher interest rates than traditional car loans

 Credit Limits

Most lenders will a place cap on the total amount you can finance with a bad credit car loan

 Loan Term Options

Loan terms are generally from 1-7 years, however some lenders may restrict the length of the loan.

Deposit 

While not always essential, lenders may require you to have a cash deposit to offset the cost of the loan

Credit Fees 

Credit and loan fees vary between lenders and some lenders may charge higher fees.

More Documentation

Lenders may require you to submit extra documentation to prove your capacity to service the loan. e.g. Payslips, utility bills, 

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Bad credit car loans in 4 easy steps

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bad credit car loans | 7 tips to help get approved 

Our lenders understand that life sometimes throws you a curveball that impacts your credit score and ability to secure a car loan, but your financial past doesn't have to be a roadblock to future financing success. Here are 7 tips to help you secure the finance you need. 

Be honest about your situation

When you apply for a bad credit car loan  lenders conduct thorough credit checks across multiple databases and transaction records. Establish credibility and good character by being honest with your answers. To assist you lenders need to know your history and unexpected suprises can damage your chances of  success. 

Maintain stable employment

One of the key requirements for bad credit car loan qualification is serviceability.  Lenders will look for a stable employment history, usually, at a minimum 6 months of continuous employment in the same job. This shows the lender that you can both hold down a job and earn a regular income to meet future loan repayments. 

Banking conduct

Your banking conduct is important. Try to avoid draining your bank account of all available funds on paydays. Lenders like to see that you have some savings, even if small. 

There are many things you can do to improve your bank statements. To learn more visit the link to  banking conduct.

 Avoid payday Loans

While it may be tempting to take out a payday loan when things are tight this is one of the biggest red flags for lenders. Payday loans indicate that you are struggling to manage your finances.  Avoid them at all costs. Increase your chances of getting approved. Learn more about payday loans here

 

Choose a sensible loan amount

Most lenders will place restrictions on the total amount you can finance using a bad credit car loan. Apply for a large loan and you will probably be declined. An acceptable loan amount would be in the range of   $10 000 to $35 000. 

A deposit can help

While not a prerequisite for obtaining a bad credit car loan a deposit can really help you get approved.  Having a deposit of around 10% of the total value of the vehicle shows lenders that you are financially responsible and have the ability to save. 

Alternatively,  trade in of any kind can also be considered a despot and this helps show the lender that you are as committed to the loan as they are which intern reduces you as a risky client. Learn more about deposits.

Credit Rehabilitation

If you've got multiple bad credit marks on your credit file  you may want to consider credit clean or credit rehabilitation before applying for a loan. credit rehabilitation helps prove you're a good client now and pay your loans as it falls due.

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FAQs

Popular Questions and Answers

Why take a bad credit car loan?

Got bad credit and not sure if you should take that bad credit car loan? We outline the pro's and con's of bad credit car loans and offer our professional advice on why you should seriously consider using a bad credit car loan to help you fix your credit challenges. 

 

Bad credit car loans - Cons

If you have experienced credit issues in the past, lenders are going to be more cautious about both the amount they are prepared to lend you and the rate they are prepared to offer. Your credit history indicates hat you are a high risk customer so expect higher interest rates. 

Most lenders will also place restrictions on the type of vehicle you can and cannot purchase, with the preference to be around newer vehicles.  While every lender is different a rule of thumb is the newer the better. Lenders want to know that in the event of default they can repossess the vehicle and recoup their money.  

Finally expect the lender to request more detailed loan  documentation in the form of extended bank statements, tax records and / or payslips. 

Bad credit car loans - Pros

With higher interest rates, vehicle purchase restrictions and obviously higher repayments you are probably thinking what are the pros of accepting a bad credit car loan. 

Firstly, with a bad credit car loan, you can solve your immediate problem - funding your car purchase, but this isn't the only advantage. Accepting a bad credit car loan can help you fix your credit problems so you can enjoy better rates and lower repayments in the future. 

Sure the rates and repayments on offer are far from ideal but accepting the loan and servicing it without default for 12 months is the fastest way to repair your damaged credit score. 

Meet your repayments without default and we can usually help you refinance after 12 months with massively improved rates and repayments. 

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