What is a Bad Credit Car Loan?

What is a Bad Credit Car Loan?

Almost everybody needs to acquire a financial loan at some point in his or her life. It could be for something major, like a house, or something more minor, like an overseas holiday, but there’s no denying that many people around the world are in some sort of debt.

While you only want to hope the best for the future, things don’t always go to plan. Repayment defaults, credit report inquiries, bankruptcy and pure bad luck are just some of the things that may leave you with a bad credit history. As a result, you may be categorised as a ‘high risk’ client by lenders and consequently have trouble getting financial aid from conventional sources.

While this can be a disheartening situation, you don’t need to lose all hope for your future; specialist financial brokers can offer a second chance to people with bad credit ratings. For example, at Zoom Car Loans we specialise in second chance finance for people in such circumstances. We are proud to have a team of expert brokers who are dedicated to helping you achieve the best result possible and not letting bad credit stop you from enjoying the lifestyle you want.

But what exactly are bad credit car loans, and how do you know if you need one? In this post, we will talk in length about second chance finance and what you should look out for during the process. Keep reading to find out more.

“Offered to someone with a poor credit history.”

A bad credit car loan is defined as a motor vehicle loan offered to someone with a poor credit history. You may also see it labelled as second chance finance, for people will generally turn to this option after being declined by typical lenders (such as the banks).

Though you may not realise it, many reputable lenders around Australia are open to helping ‘high risk’ clients. With the right help, you should be able to achieve your goal of purchasing your own motor vehicle.

Seems Too Good to be True? It Probably Is!

When looking for bad credit car loans, you should be wary of scams. Many offers out there seem amazing on the surface but might actually end up costing you more in the long run.

For example, a no-credit-check car loan is just one case that sounds like a great option (especially if you have a bad credit history).

This is where a lender or broker will offer a loan without doing a thorough check of your personal credit history. While this definitely sounds tempting, it may actually put you at a disadvantage for these loans are typically approved with very high interest rates. You may also have to place a down payment on the car that’s larger than normal; all of this extra money is meant to cover the extra security risk you pose as someone with bad credit history, but it doesn’t necessarily work in your best interest. These loans often involve other conditions that may affect you negatively in the future, so make sure to do your own research when shopping for a loan to avoid a situation where you might end up worse for wear.

Beware With Who Makes The Offer

In addition, it’s important to be careful of loan scams offered by fake companies or individuals. These have been known to dupe many hardworking people out of a lot of money. You should be suspicious of any cold calls or emails from any company that might look dodgy even if it claims to be legitimate, as well as any deals that require you to make large upfront payments to cover things such as tax, initial repayments or insurance. Generic email addresses are also a tip-off, as well as low-interest rates; you should only deal with reputable brokers and lenders that you trust without any doubt. Keep an eye out for any deals that are simply too good to be true – there’s a likely chance they are.

Where Can I Get a Bad Credit Car Loan?

While there may be lots of scams on the market, there are also a number of trustworthy financial brokers who you can turn to in hard times. And you’re already in the right place! Zoom Car Loans is one of the reputable brokers in Australia that specialises in bad credit car loans – we work with most of Australia’s top financial institutions to negotiate the best loan for your individual circumstances.

We don’t believe a mistake from your past should interfere with your future, so we aim to take the stress out of applying for a loan and help you purchase the perfect vehicle. Sometimes, we can even help you boost your credit rating!

In addition to bad credit car loans, Zoom Car Loans can help people who are facing issues due to other reasons. This includes people whose income relies on Centrelink repayments and those who don’t have enough savings to cover a deposit. No matter why you need to get a car loan, Zoom Car Loans promises a superior service that incorporates the following aspects:

  • Quick and streamlined application process – apply online in 2 minutes
  • Same-day approvals – loans are typically approved within 24 hours of application
  • Flexible terms and repayments that can be customised to your unique situation
  • The ability to purchase your car where you want – a loan brokered by Zoom Car Loans can be used for both private purchases and dealer sales all over Australia.

Get Behind the Wheel with Zoom Car Loans

You can use your new car loan for either a new or a second-hand purchase, giving you the freedom to choose the perfect car for your needs. By using our services, you can walk into a dealer with the confidence and knowledge that you have the correct financing to support your purchase. This can help you avoid being duped by car salespeople into higher interest rates on payments or undesirable situations.

To find out if you’re eligible for a loan, simply get in touch online or call one of our expert brokers on 1300 138 273 to have a chat about your finance options.

Contact Us

8 + 9 =