Think you cannot get Car Finance because of bad credit....think again!


Do you have bad credit? Do you have defaults? A bankruptcy? A Part 9? Or a court judgment? against your name. If you do, unfortunately you will be classified by most financial institutions as a bad credit client and this has probably led to many declined applications in the past. Please don’t be worried as we have some good news.


Having bad credit does not mean you have no options and that finance is far from reach. There are options! It’s just that maybe you have been looking in the wrong place. The bad credit market in Australia is quite small and mainly dominated by a few big Non-Conforming lenders. These Non- Conforming lenders generally do not advertise direct to the public, hence the reason why you may not have heard of them.


Non-Conforming lenders are out there and mainly distribute their product through brokers like “Quantum”. These lenders set up their businesses and produce products tailor made for individuals who have bad credit. These lenders provide bad credit car loans, bad credit home loans and bad credit commercial loans.


Bad credit lenders do have set policies, like any other institution. However, a bad credit lender is willing to set policies that will allow somebody with bad credit to obtain a car loan, home loan or a commercial loan, when other financial institutions will say “NO”.


A bad credit lender can provide finance if you have defaults, are an ex-bankrupt or have court judgments on your file, however, there are still guidelines in place, which they follow, and unfortunately not all clients with bad credit will be approved.


If a company is advertising “all applications accepted” or “all applications approved”, like many do, one should be wary of forwarding their application on to them. A company cannot really guarantee a bad credit loan without viewing the credit file. If they do, you should be cautious of them because the loan is probably a really high interest- in house loan facility, which will leave you with a debt double the purchase price of the car or they are false advertising to reel you in.


A bad credit car loan is a great way to establish your credit file again and build some of that all important repayment history. Unfortunately, at some stage in our lives we might go through a period of financial mishap, which leads to a default on our file.


Time goes by, you get yourself into a better financial situation and so you want to get back into the market and prove yourself. A bank loan at this stage is out of the question, however a bad credit loan is the answer for now. Eventually however, you would like to get loans approved by banks at prime rates. This is possible and a bad credit car loan is a great step to get you back to your former glory and have banks not refusing your application but begging for your application.


Once you have completed the first step and paid back the bad credit loan, taken care of your default (paid in full, dropped off your file) and have developed a good repayment history, CONGRATULATIONS - you have successfully built your credit file.