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Jacaranda is the solution to car finance with bad credit
March 9, 2020●
10 minute read●
A second chance
So, you’ve got a bad credit rating but you want to apply for a car loan? Some lenders may turn you down. However, there are many other, reliable lenders out there who are willing to give you a second chance to access car finance with bad credit. Jacaranda Finance is one of them.
At Jacaranda, we don’t believe in turning people away based on just one number. After all, we don’t want to discriminate when it comes to getting people behind the wheel. With some compassion and flexibility, it is possible to get a car loan from Jacaranda if you have bad credit. We help thousands of Aussies in obtaining car finance with bad credit. To find out how you can become one of them, keep reading!
What you need to know about bad credit
Jacaranda Finance could still provide you with a car loan if you have bad credit. We want to help you get on the road even if no one else will.
Car finance with bad credit isn’t as scary as it seems (at least it isn’t at Jacaranda)! We’ll explain everything you need to know about credit scores and how you can apply for car finance with bad credit below.
What is a credit score?
A credit score is a number between 0 and 1,200 that represents the information in your credit report. It can show lenders how responsible and trustworthy you are as a borrower. Higher scores means you have good credit, whereas lower scores means you have bad credit. Generally, follow the below table:
0 to 509
It is highly likely that an adverse event (e.g. default on your payments, court actions, etc) will harm your credit score in the next twelve months
510 to 621
It is likely that an adverse event will harm your credit score in the next twelve months
622 to 725
It is less likely that an adverse event will harm your credit score in the next twelve months
726 to 832
It is unlikely that an adverse event will harm your credit score in the next twelve months
833 to 1200
It is highly unlikely that an adverse event will harm your credit report in the next twelve months
Your credit score is affected by how reliable you are at paying back your bills and loans (e.g. credit card bills, home loans or personal loans). If you pay back your bills and loans on time, then you should have nothing to worry about! However, if you know you have a history of struggling to make repayments, then you may have a low score. Therefore, you may have bad credit.
Check your credit history
Before you apply for a car loan, you should always check your credit history. This will ensure that there are no nasty surprises for you or your lender!
Checking your credit score is a relatively simple process. All you have to do is jump online to the Australian Government website. There, you can choose between three different credit reporting bodies: Equifax, Experian and Illion. These credit reporting bodies will be able to show you your credit score.
As these sites are approved by the government, they must give you access to your personal credit report once every twelve months. You are also able to order a free credit report delivered to your residential address or email address.
These sites may ask you for some information so that they can identify you. For example, you may be asked for your full name, date of birth, residential address and driver’s licence number. All of this is secure through the government’s website.
What does it mean if I have bad credit?
If you have a credit score between 0 and approximately 500, then, unfortunately, you have bad credit. Scores within this range are below average. This means that many lenders may decide that you are an untrustworthy borrower and may deny any loans that you apply for.
Fortunately, this isn’t the case at Jacaranda! We place much more trust in you as a borrower. We understand that a credit score is not everything, and we will consider other factors in our assessment of your loan application. For example, we’ll consider employment status, income, and other financial commitments in addition to your credit score.
That’s great! How does car finance with bad credit work at Jacaranda?
To help you with the process, we’ve compiled a short list of tips to help you secure car finance with bad credit at Jacaranda. These tips will make the process as simple and stress-free as possible.
Be upfront and honest
We’ll conduct a credit check as part of our assessment of your loan application. However, it’s important that we work together. Being upfront and honest with our team is the most important thing you can do. It shows us that you are trustworthy and responsible. Also, it allows our team to fully understand your financial history and current financial position.
Once we understand your financial situation, we can lend you a suitable and affordable amount of money. We believe in responsible lending practices, so we must be aware of your credit history to ensure that the loan is suited to your circumstances.
Have a stable job
Bad credit may suggest that you have experienced some unfortunate financial situations during your life. These situations may have occurred many years ago and have negatively affected your credit rating. In these cases, your current financial circumstances can sometimes be more important than the number of your credit score.
If you currently have a stable job with regular income, this is a great indicator of financial stability. It will give your lender confidence that you will have the financial means in the future to make the repayments on your loan. At Jacaranda, we prefer that you’ve had income from your job coming into your bank account for at least the last three months.
A gateway to good credit
What’s more, taking out a loan with Jacaranda Finance can be a great way to rehabilitate your bad credit score! If you can keep up with all your repayments on time, this will demonstrate that you’re responsible with your money. As a result, your credit score may increase over time. So you see, car finance with bad credit can be a good thing!
Why do so many customers trust Jacaranda Finance?
Well, there are a few simple reasons why so many Australians trust Jacaranda to lend them money. We’ll lay them out for you:
- We’re a no-nonsense lender that doesn’t beat around the bush;
- Our services are speedy (we can approve your loan application sometimes in 60-minutes*!);
- We don’t charge you any hidden fees or costs; and
- Our team understands that bad credit shouldn’t hold you back when it comes to car finance.
Car finance with Jacaranda Finance
So, now you know that you Jacaranda may help allow you to obtain car finance with bad credit. The next question to ask is ‘what are Jacaranda’s car loan offers’? Let’s get right into it.
Car loan amount
Jacaranda Finance offers car loans of amount between $5,000 and $35,000. We encourage you to research the type of car you want to buy and carefully consider your current financial situation. This will tell you how much you can reasonably afford to loan in order to buy the car.
Car loan terms
We offer our car loans for terms between 1 and 5 years. This allows for great flexibility for your loan repayments. Our friendly team here at Jacaranda will work with you to agree on a term that is suitable for your budget.
Repayments are entirely up to you! Before making a decision on repayments, there are some things to consider. For example, would you like to repay your loan in a short period of time? This would mean paying higher amounts in your repayments, but you get rid of your debt quickly! Alternatively, would you like to repay your loan slower and over a long period of time? This would mean that you pay less on each repayment, but you may accumulate higher interest.
Also, you won’t have to worry about repayments. We understand that sometimes it’s tricky to keep track of your repayments when you’ve got other expenses! With your permission, we can set up a system that automatically debits the repayment amount from your bank account on your payday. That way, you won’t have to stress about your loan during the loan term.
If you want to have a go at calculating your repayments, then check out our car finance calculator page. This page will tell you everything you need to know and give you some more information.
As with all loans, your loan with Jacaranda will accumulate interest. Interest is a small percentage of your total loan that you pay as a fee. You will pay this in addition to your loan repayments. Think of it as a small charge from us for providing money to you upfront.
Unlike some other lenders, we’re transparent about our interest rates. Many things can affect interest rates, such as your credit score. We’ll explain the interest rates that apply to you when you get your car loan.
Our car loans at Jacaranda are secured, which means that an asset is attached to the loan to secure it. In this case, this will usually be your car. This allows you to borrow more money and for longer than if you took an unsecured loan, which has no asset attached to it.
We do have to warn you that a secured loan allows the lender to repossess the asset if you fail to make your repayments. There’s no need to worry, though! This is an absolute last resort. We work with you to come up with solutions if you find yourself in a sticky situation. Also, we review your application thoroughly to ensure that we aren’t lending you an amount of money that we don’t think you’ll be able to reasonably afford. It’s our aim to avoid situations like those!
Can I apply?
Applying for car finance with bad credit has never been easier. Before you start, however, we have a few requirements that you’ll need to comply with to get your application kick-started. Please consider the following questions before applying:
- Are you 18-years of age or older?
- Do you have a valid driver’s licence?
- Are you an Australian citizen or a permanent resident?
- Have you been receiving regular work income into a personal bank account for at least the last three months? (preferred but not mandatory)
If you answered yes to all of these questions, then Jacaranda Finance may just be the right lender for you!
Once you confirm that you can apply, we need a couple of details from you. Firstly, we need some basic personal information. This includes your name, date of birth, residential address, and other similar details.
Secondly, we will need some contact details so that we can contact you if your application is successful. A mobile number and email address should do the trick.
How long will it take?
Once you’ve filled out all the details and decided how much you want to borrow, submit your application form. This is where our job kicks in! You can sit back and relax while we assess your application. If you apply during business hours, we may be able to approve it in as little as 60-minutes!
If we need to contact you in the meantime to clarify any information, we’ll simply give you a call. Otherwise, you may be on the road in a matter of hours!
Let’s get started!
What are you waiting for? There’s no reason to hesitate to apply for car finance with bad credit. Whether it’s car finance in Melbourne or car loans in Adelaide, Jacaranda is the lender for you. Simply fill out our online application form. If you have any questions or concerns, don’t hesitate to contact our helpful team. You can find all of our contact details here, such as our phone number and online messaging service.
If you’re not looking to buy a car but want to put some money towards other expenses, then check out our personal loans page. As with our car loans, we can also offer personal loans to those with bad credit.
We’re looking forward to helping you!
*If you apply during business hours