Bad Credit Car Loans – Guaranteed & Instant Approval
If your vehicle has broken down, you may be desperate for a loan. Having a bad credit score can be quite hindering when trying to apply for a car loan, especially if you’re trying to get the loan from a bank.
If you are thinking, “I need a loan with bad credit“, there are financial institutions that provide second-chance finance under some eligibility terms. In other words, there’s a chance for you to get a loan with bad credit for your next car.
Is there such a thing as guaranteed loan approval in Australia, though? That’s what this article attempts to address, so stick around.
Do Guaranteed Loan Approvals Exist?
According to Australia’s National Consumer Credit Protection Act 2009, loan providers aren’t allowed to offer guaranteed approvals to their clients to ensure responsible lending.
These laws are in place to protect borrowers from the hardships associated with trying to repay an unsuitable loan, from substantial interest rates to overly high fees.
Does that mean you can’t get a car loan with a bad credit history or no credit? The answer is yes if we’re talking about traditional lenders like credit unions and banks.
You can, however, acquire a car loan with a poor credit history from private financial entities such as Finance One, Centreline Finance who may be guaranateed approval direct lenders for your next loan. Of course, not everyone will qualify for personal loans guaranteed approval. Depending on the size of the loan you request, a credit check may be required.
What Are Bad Credit Car Loans?
Bad credit car loans, as the name suggests, are automotive finance loans that cater to people with bad or no credit history for fast approval loans bad credit.
Often when someone needs a quick vehicle loan, it’s because their other ride has broken now. If you need a loan fast, consider getting secured loans for bad credit instant decision. This can be handy if your work vehicle has broken down and you need to fix it as quickly as possible.
Lenders that offer this type of financing typically consider those who have defaulted on credit, parties to Part IX agreements, or former bankrupts.
Note that bad credit car loans tend to come at high interest rates compared to standard market rates presented to those with a good credit history or in an advantageous borrowing position in general. In addition to cars, you may be wondering whether we offer bad credit motorcycle loans. The answer is yes! Check out the link to submit your application for a motorcycle loan today.
Speaking of getting loans for items other than cars, we also can offer boat loans. Apply for a bad credit boat loan if you would like to buy a boat.
If you prefer trucks, consider applying for a truck loan bad credit.
How To Get A Car Loan With Bad Credit
To get a car loan with bad credit, you need to apply for it at a lender or car dealer that offers bad credit car loans for auto financing before buying a car. A poor credit car loan doesn’t require a credit check, allowing you to get car finance even if your credit score is low.
After you buy a car with a bad credit car loan or vehicle loan, lenders often use the car as collateral.
Advantages and Disadvantages of Bad Credit Car Loans
Just as with any form of finance, there are positives and negatives to applying for a bad credit car loan. Let’s go over them very briefly.
Based on our firsthand experience, applications and transactions involved with poor credit car loans are as simple as can be. All you need to do is fill out and submit a short application form, which shouldn’t take more than mere minutes. You’ll also need to provide valid identification.
The application process, as well as the transaction itself, are carried out online. No faxing or additional documents are required in most cases. Upon approval, you’re likely to receive a phone call or an email from the lender.
Upon receiving and approving your bad credit car loan application, the lender will send you the information you need to know about policies and interest rates. You need to review this info as carefully as possible to ensure it suits your financial situation. From there, all you need to do is affix your online signature.
Upon working out the rates and repayment scheme with your lender, the approval will be given right away as a same-day loan. Some lenders process applications in under an hour!
Almost everyone is eligible for a bad credit car loan since the eligibility terms aren’t exhaustive at all. Generally speaking, most loan providers only require proof of identification. If you would like guaranteed loans for bad credit, keep in mind that we cannot always guarantee a loan but we recommend you apply if you have a job or income and need a loan.
There are, however, some lenders who may require additional documents. If you don’t possess such documents, some lenders offer you the ability to bring another person to co-sign the loan agreement.
You won’t have to withdraw money out of your bank account and physically visit your lender’s office in order to repay them every instalment.
Most loan providers will require access to the borrower’s bank account so that they can carry out payment withdrawals automatically to ensure convenience.
High Down Payments
Our investigation demonstrated that, Bad credit and no credit check car loans tend to be tied with significantly high down payments. It’s one of the security measures that lenders implement to protect their loans since they won’t be analyzing the borrower’s credit score.
High Interest Rates
Bad credit and no credit check car loans might be cheap, but they’re typically associated with high interest rates as a means of making up for not acknowledging the borrower’s credit history.
It’s worth noting that lenders either opt for large down payments or high interest rates, but not both together. Some lenders offer borrowers the chance to pick between the two options, and most borrowers opt for the high interest rate route.
Long Repayment Term
Bad credit and no credit check car loans usually come with long repayment schemes that are usually 5-10 years. This can be viewed as a pro or a con, depending on how you’re looking at it.
It’s viewed as a pro because it reduces the amount of money you have to pay for each instalment. It’s viewed as a con because the overall amount you’re going to pay is notably higher than the amount you’d pay with a shorter repayment scheme.
Bad Credit Car Loans No Credit Check
We determined through our tests that, Bad credit car loans no credit check are auto loans that you can get approved for even if you have a bad credit score. No credit check car dealers make it easier for individuals to get financing for their new vehicle even if they have a low credit score.
No deposit is required for a poor credit car loan, and the debt repayments are spread over a long-term period. Car dealers and lenders offer this type of loan under various names, such as bad credit loans, no credit check car loans, and bad credit auto loans.
Guaranteed Car Finance No Credit Check Australia
Guaranteed car finance no credit check Australia are no credit check car loans that you can use to fund your car purchase even if you have a poor credit score report.
Bad credit car loans are easy to get accepted for. Australians who need a vehicle loan can apply for one of these bad credit loans if their credit history isn’t good enough.
When Are Bad Credit Car Loans Rejected?
Eligibility terms tend to vary from one lender to another, but generally speaking, most lenders won’t approve borrowers who are currently unemployed, currently bankrupt, on a pension, or claiming youth allowances.
It’s also worth noting that mainstream car financiers are less than likely to approve borrowers who are parties to a Part IX debt agreement, as it’s viewed as too high of a risk to take on.
Poor credit car loans are the way to go if you’re worried about getting denied based on your credit history. There are many good used vehicles available in the $5000 price range. Apply for a 5000 loan with bad credit today if you need a loan to buy a vehicle.
You can also apply today for fast approval loans bad credit with Perfect Payday. Just be sure to weigh the advantages and disadvantages of the whole concept before applying for a loan.