Are you facing credit issues and struggling to secure a car loan? Bad credit car loans in Australia have got you covered. When a person is already having a rough patch in terms of financial position—either due to job loss, debts, or specifically bad credit—the idea of taking on an additional car loan might seem intimidating, especially when most lenders maintain an unsupportive disposition towards individuals with bad credits. Regardless of the attitude of the lenders, it can equally be a daunting thought for the individual to apply for another loan and bear more financial burden.
Fortunately, bad credit car loans offer a safer, handy environment for the borrower by allowing them to be at ease and repay the amount at a manageable pace. Besides, there are no complexities involved while applying for the loan, and this is also an excellent opportunity for the borrower to improve her/his credit score.
Difference between a Bad Credit Car Loan and Traditional Car Loan
Traditional lenders always prioritize good credit scores, and hence it is not surprising that they sanction loans only for applicants with high credit scores. According to a survey conducted in Brisbane last year, lenders at traditional financial institutions rejected 89% of the loan applications with bad credit scores. In such a scenario, it is better always to go to lenient finance companies like Finance One that prioritize the needs of the borrowers irrespective of their credit history. Finance companies that offer bad credit car loans are usually tied up with special financiers instead of ordinary banks. It gives them the freedom to be flexible whenever required. Reputed finance companies offer bad credit car loans even to borrowers who receive Centrelink benefits or pensions such as parenting payment, aged pension, etc. The only obligation is that the applicant will have to produce the required documents—like proof of income and bank statements of the past few months—to complete the application procedures.
Note: the specifics might vary from one company to the other.
The Perks of Securing a Bad Credit Car Loan
Easy to Secure
When compared with traditional car loans, bad credit car loans can be secured easily. Finance companies do not sanction such loans by denying any of the features of a normal car loan. As they gain the borrowers’ trust, companies gradually get more customers, which will eventually contribute to their growth. One advantage is that quick sanction of loan means that the borrower with a bad credit score is getting a chance to improve her/his score since s/he would be freed from rejections which can create a bad impression in future financial dealings with finance companies.
Affordable and Manageable
Bad credit car loan lenders understand the financial situation of their customers, and therefore, they are least interested in adding more insult to their injury. Since these loans are primarily directed at ones who cannot pay heavy monthly interests, bad credit car loans in Australia are designed to fit one’s budget, and hence in most cases, the stipulated time for paying out the loan is the longest. One important thing to notice is that the companies do not charge any extra fee such as early penalty, document fee, or processing fee.
Minimum Eligibility Requirements
The most annoying thing about traditional auto loans is that they demand a lot of documents from the applicants. This will only make things difficult for customers who are going through a rough financial shape. However, bad credit car loans in Australia would only demand your bank statements, proof of income, and a privacy statement as part of the application process.