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Bad Credit Car Loans
August 18, 2020● 8 minute read●
Need a second chance applying for credit?
Is a bad credit rating something that has held you back in the past? Sometimes, having bad credit can be a huge burden, especially when you’re applying for a loan. Well, you’ll be happy to hear that Jacaranda Finance believes in second chances. If you’re looking for a car but can’t cover the full cost of it upfront, Jacaranda can lend a hand. Our bad credit loans up to $35,000 could have you driving your dream car in no time
Want to learn more before applying? We’ve listed a number of frequently asked questions (FAQ) to help answer any queries you may have. Or maybe you want to know more about the application process? You can find this, as well as our eligibility requirements on this page.
You might’ve heard of us, or maybe you haven’t. We are Jacaranda Finance. One of the most trusted and popular lenders on the Australian market. Currently, our primary products are both personal loans up to $10,000 and online car loans up to $35,000.
We’re aware of the stigma associated with our industry. That’s why it’s our priority to ensure we deliver a transparent, honest and damn good service to satisfy your needs. So if you’ve been rejected by a traditional lender because of your credit score, Jacaranda can give you the fair-go you deserve.
What are bad credit car loans?
Bad credit car loans are a type of finance that is provided to people with poor or average credit scores for the purpose of purchasing a vehicle. Traditional lenders such as banks or credit unions will typically view credit scores below 600 as a red flag when assessing loan applications. It’s for this reason that people turn to lenders who are willing to look past bad credit.
Can I get a car loan if I have bad credit?
Yes, getting a car loan when you have bad credit can be a challenge for some people. Yet, there are some bad credit loans available to those who have been knocked back repeatedly by banks and other lenders due to their poor credit history, bankruptcy or part 9 debt agreements.
Jacaranda Finance works a little differently to traditional lenders. We can approve bad credit car loan applications. This is because your credit score only plays a small role in our assessment process. We prefer to put more focus on your current finances such as your income, spending habits etc.
As we are a responsible lender, it’s important to note that we cannot guarantee approval on your loan application.
What is the lowest credit score you need to get a car loan?
We cannot speak on behalf of other lenders, however, at Jacaranda Finance if your credit score is above 300, you’ll have a better chance of approval for a bad credit car loan. That’s not to say your chances of approval are completely diminished if your credit score falls below 300. We put more weight and focus on your current finances. So, if you’ve demonstrated financial responsibility in the months prior to applying, and we believe you can comfortably afford the loan repayments, then you’ll have a better chance of approval.
Can I refinance a car loan with bad credit?
Yes, Jacaranda can offer car loan refinancing for people with bad credit. Refinancing refers to borrowing money from a new lender with better terms/rate in order to pay off your current loan.
If you’re not happy with your current car loan, and decide Jacaranda Finance’s car loans might be a better fit, simply submit a car loan application. When describing the purpose of your loan, let us know you’re refinancing your current car loan.
Are your bad credit car loans secured?
Yes they are. All of Jacaranda’s car loans are secured. This means you’ll need to provide an asset to secure your loan. In some cases, you could secure your car loan with the car you’re purchasing.
Do you do credit checks for car loans?
Yes. We will conduct a credit check on every eligible applicant. But don’t let this deter you from applying if your credit score isn’t up to scratch.
As a responsible lender, we must conduct credit checks on all applications but it’s not the only thing we look at. Instead, we prefer to put more focus on your current finances and how you’re going to repay your loan. We consider factors like income, spending habits and relationship with money more important than your credit score.
How long will I have to pay off my car loan?
The repayment period on our car loans ranges between 1 and 4 years depending on the amount you borrow and your preferences.
Can I get a used car loan with bad credit?
Of course! At Jacaranda, we don’t discriminate on whether you want to purchase a brand new set of wheels or a pre-owned gem.
How to apply for bad credit car loans
Step one: Apply online
To begin, scroll up to the top of this page. Let us know how much you’d like to apply for and your preferred repayment period and click ‘Apply Now.’ Then you’ll be taken straight to our quick application. Here you’ll be required to fill out some personal and financial details as well as details of the car you plan on purchasing. When you’re done hit ‘submit’ and we’ll receive your application immediately.
Step two: We’ll assess your application
Now it’s over to us. Once we’ve received your application, one of our loan specialists will begin to assess it. If you apply during our regular business hours, then we could deliver you a quick decision. If we require any additional information from you, we’ll get in touch to request it.
Step three: Get your funds
If you’ve been approved for a car loan, we’ll send over a loan contract for you to review and sign. We recommend reading the terms of loan carefully. When you’re happy, simply sign and we will receive it back immediately.
We’ll then transfer your funds directly to you. If you have an NPP-enabled bank account, you could get your cash in 60-second or less.
Am I eligible to apply?
We have a list of eligibility criteria that you’ll need to meet before you apply. To be eligible you need to:
- Be 18 years or older;
- Be an Australian Citizen or Permanent Resident;
- Receiving a regular income into a personal bank account for the last 3 months;
- Have an active Australian mobile number and email address;
- Have internet banking set up.
If you meet this criteria, then you’re eligible to apply for our bad credit car loans!
What information do I need to provide?
Our application is fast and easy. That means we’ll only require you to submit documents that are 100% necessary for the application process. You’ll just need to provide the following details.
- 100 points of ID (name, D.O.B, etc.)
- Contact information
- The reason for your loan
- Internet banking details
- Your MyGov account details (if you receive Centrelink benefits)
- Employment details and employer contact information
Why choose Jacaranda Finance
At Jacaranda, we understand that your credit score isn’t always an accurate indicator of your current financial situation. That’s why we are able to look past a less than perfect credit score when assessing your application. Whether you’re after bad credit car loans or bad credit personal loans, we may be able to help.
We’re one of the fastest lenders on the market. What do we mean by this? Our application is quick and simple, meaning you can complete it at home or on the go. For most people, it only takes 8 minutes to apply. Then, you could get an outcome in just 60 minutes*, and if approved have the money transferred in just 60 seconds**.
Taking on a loan and committing to its repayments can be a difficult decision to make. It’s important to us that you have all the relevant details and costs before you sign your contract. This will include your interest rate, fees, repayment period etc.
Factors to consider before buying a new car
Purchasing a car is a big commitment that should be thought through thoroughly. Just like a loan, it’s best to compare prices offered at multiple dealerships, until you find one that fits your budget well. Keep in mind that when you start saving up for a car, you need to save up for more than your preferred car’s selling value. There are many other factors to include in your savings process. Here’s a list of factors you should consider before stepping into a dealership and purchasing your first car.
- Car make and model. Every single cars make and model will come with a different price tag. Before stepping into a dealership, think about your lifestyle, needs, and how often you’ll be driving the car. Different car makes and models will serve different purposes, and that’ll be one of the biggest factors to consider when buying a new vehicle. Do your research beforehand and go to the car dealership with a rough idea of what car make and model you prefer.
- Budget. One of the biggest things to consider before buying a new car is your budget. Plan out a rough budget including your income, expenses, debt, bills, and think about how well a new vehicle would sit with your budget. Not only will you need to consider the selling price of the car, but you’ll also need to consider other costs such as fuel, registration, and insurance. While insurance and registration can be yearly costs, fuel is a cost that’s usually incurred fortnightly, depending on how often you’ll be driving the vehicle.
- Insurance. You can’t legally drive a vehicle without being insured. So, insurance is one of the most important factors to consider before buying a car. Think about how often you’ll be driving the vehicle, how many people will be going behind the wheel of your new car, etc. Different types of car insurance come with different price tags, especially if you’re a driver under 25.
- Test drive. The test drive is one of the most important components of buying a vehicle. Now that you’ve found the perfect car, it’s time for a test drive. Even if a car’s price is affordable and ticked all your boxes, you may not enjoy the drive. Make sure the inside of a car meets your preferences and not just the outside.
If bad credit car loans aren’t your thing, we could also offer car registration loans, car repair loans and even insurance excess loans for those little mishaps.
Want to learn more about no deposit car loan? Let Jacaranda fill you in.