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Getting a Car Loan with Bad Credit: What You Need to Know

Securing a car loan can be challenging, especially if your credit score is less than perfect. Many people think that having bad credit means they won’t be able to get financing for a vehicle, but that’s not entirely true.

 In fact, car loans bad credit are available, and with the right approach, you can drive away in the vehicle you need.

What are Car Loans Bad Credit?

Car loans bad credit are loans designed for individuals who have a low credit score or a poor credit history.


These loans typically come with higher interest rates than those offered to people with good credit because lenders view borrowers with bad credit as a higher risk.


However, they offer an opportunity for people with credit issues to finance a car and potentially improve their credit over time by making on-time payments.


Why Do You Have Bad Credit?


Bad credit can happen for many reasons, including missed payments on bills, high credit card balances, or having a limited credit history.


If you’ve declared bankruptcy or had a foreclosure, this can also negatively impact your credit score.


Whatever the reason for your low score, it’s important to know that there are options for financing, like car loans bad credit, that can help you get back on track.


How to Get a Car Loan with Bad Credit



  1. Check Your Credit Score: Before applying for car loans bad credit, it’s important to know your current credit score. This will give you a better idea of where you stand and help you understand what kind of loan you might qualify for. You can get a free credit report from various sources online.

  2. Save for a Depositt: Having a deposit can increase your chances of getting approved for a loan. The more you can put down upfront, the less you’ll need to borrow. This can also show lenders that you’re serious about making the purchase and that you’re less of a risk.

  3. Compare Lenders: Not all lenders offer car loans bad credit, so it’s essential to shop around. Some lenders specialise in working with individuals who have bad credit and offer more flexible terms. Be sure to compare interest rates, fees, and repayment terms before making a decision.

  4. Consider a Co-Signer: If you’re struggling to get approved for a car loan on your own, you may want to consider asking a family member or friend to co-sign the loan. A co-signer with good credit can help you get a better interest rate and increase your chances of approval.


Using a Bad Credit Loan Broker


Another helpful option to consider when seeking car loans bad credit is working with a bad credit loan broker, like Zoom Car Loans.


At Zoom we specialise in connecting individuals with lenders who are willing to work with bad credit borrowers. We have access to a wide network of lenders and can help you find the best possible terms for your situation.


By using Zoom, you save time and effort as we do the heavy lifting of comparing loan options, negotiating on your behalf, and ensuring that you get a deal that fits your budget.


Additionally, we can offer valuable advice on improving your chances of approval and securing better loan terms.


Improving Your Credit Score Over Time


Car loans bad credit can be a tool to help you rebuild your credit. By making regular, on-time payments, you can gradually improve your credit score, which will make it easier to qualify for better financing options in the future.


It’s also important to keep your other debts under control and avoid taking on more credit than you can handle.


Car Loans Bad Credit


While having bad credit may make it harder to get a loan, it doesn’t make it impossible. Car loans bad credit are designed to help individuals with less-than-perfect credit get the financing they need.


By utilising the services of a Bad Credit Loan Broker, like Zoom Car Loans, you can not only get the car you need but also improve your financial health over time. Get in touch today.


 

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Streamlined

We have a highly streamlined pre-approval and settlement process.

Personalised

Personalised terms and repayments to suit your budget and lifestyle.

Proactive

Let us know your vehicle requirements and we will help with the search.

Obligation-free

All Centrelink car loan applications are completely obligation free.

Do I meet the minimum income requirements?

As all credit providers work on a basic principle of affordability, to be approved for a loan, applicants must meet a minimum income amount of $800 per fortnight (not including covid supplement).

This minimum amount can be solely from Centrelink payments or can include employment income as well.

This minimum amount has been put in place to protect the borrower. It’s the minimum amount that the lenders deem the borrower can comfortably make their loan repayments, while still being able to afford basic living expenses such as groceries, bills, rent, etc.

Although these measures tend to be very accurate, they do not take personal circumstances and habits into consideration.

You should always look at your own spending habits and budget to ensure you will be comfortable with any additional borrowing.

Here at Zoom, we are able to assist the large majority of Centrelink customers, however, please note that if you are solely receiving a New Start Allowance/Jobseeker, Youth Allowance, or Austudy, unfortunately these aren’t accepted income forms to qualify for a loan.

Our finance specialists work on your behalf to do everything possible to secure a loan for you, so be sure to contact us to speak further about your current circumstances if you’re unsure.

 

 

 

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We help car loans for Centrelink customers get approved!

There are minimum requirements needed to qualify for their car loans. The best way to find out is to apply online for us to find out all details and do our best to get your driving away in a good car!

  • No deposit loans

  • Bad credit history

  • Centrelink payments

  • Ex-bankruptcy

  • First loan

  • Declined by the bank

Useful information

You should always check your options before you accept a loan and ensure that you use the free resources available throughout Australia to assist you when borrowing funds of any nature. For information about other options for managing bills and debts, you can ring 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor. Alternatively, contact our friendly team to discuss your options.

What our customers have said about us

I can’t express my gratitude enough to Rowan. He was so helpful very friendly and extremely professional with the process of getting a car loan for myself. I can’t thank him enough for all he did for me. Thanks Rowan
Tracey D

 

Very please with the work from Joshua an Katie .. they got my loan approved asap as a mum of 3 an needed a car asap… From start to finish they where fantastic an repayment are manageable… Thanks to zoom car loans for helping me within 10days an got out new family car this morning..

Much appreciation to the team
Misty H

 

Great service. Quick, friendly and professional! Highly recommend if you’re struggling elsewhere to get finance.

Jessica C

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