Can I get still a car loan with a bad credit history?

If you a have bad credit history, a car loan is out of the question, right? That’s certainly the general consensus, but it couldn’t be further from the truth. If you need a car and find that you keep getting rejected by traditional lenders, it’s time to turn to specialised lenders like Ume Loans.

Bad credit car loans are available, and they’re more accessible and beneficial than you might think.

The Truth About Getting a Car Loan with Bad Credit in Australia

Every time you take out a new loan, make a repayment, or fail to meet your obligations, your activity is recorded by credit reporting agencies like Equifax, Illion, and Experian. These agencies maintain a file on every Australian with a financial record, and it includes data such as:

• Name and address history
• Credit inquiries
• Payment history
• Active and settled accounts
• Credit infringements

The data gathered from financial activity is used to build a credit score that calculates financial viability. In other words, if you repay your debts on time and don’t open too many accounts, your score will be high and lenders will be more inclined to give you credit. If the reverse is true, you’ll be classified as a bad credit borrower and will struggle to get new loans and lines of credit.

This can make it difficult to get a car loan, but all is not lost, as bad credit car loans are available.

Can I Get a Car Loan with a Bad Credit Score in Australia?

Bad credit car loans are specific loans tailored toward borrowers with bad credit or no credit, including people who have defaulted on loans, declared bankruptcy, missed payments, and have yet to establish a credit history.

By securing the loan against the vehicle (using the car as collateral), lenders are able to offer competitive rates even though the borrower is deemed high risk. These loans are available on vehicles from a number of dealerships across Australia and can also be used for private purchases.

The Benefits of Getting a Bad Credit Secured Car Loan

So, you definitely can get a car loan with bad credit, but why would you want to? What are the benefits of using a bad credit loan as opposed to alternative methods such as waiting until your credit score has improved?

1. You can get pre-approved for a loan in minutes

At Ume Loans, you can complete a car loan application online in just a couple of minutes. From there, one of our Lending Specialists will get in touch and provide pre-approval. It’s quick, hassle-free, and ensures you’re not drowning in paperwork.

You can start shopping for a car right away and will be in the driver’s seat before you know it.

2. You can get the car you want

Without a car loan, you might be forced to buy the cheapest car you can find, something that will inevitably break down in a few months and leave you with hefty repair bills. Even if you have a little cash saved up, cars are expensive, so you’ll end up cutting corners and getting something you don’t really want.

With a bad credit car loan, there’s no need to settle for less.

3. Bad credit loan rates are still competitive

Bad credit loans charge a higher interest rate than traditional loans, but the fact they are secured against the car provides a little collateral and gives the lender more leeway. What’s more, if you use reputable lenders like Ume Loans, you’re always guaranteed competitive rates.

4. It could improve your credit score

A bad credit car loan will appear on your credit report and could reduce your score in the short term. However, it won’t be added to your credit utilisation ratio, so the increase is minimal. What’s more, if you keep meeting your repayment obligations, your score will steadily increase.

It can be hard to escape bad credit. To improve your credit score, you need to show that you’re a reliable and trusted borrower, but if no one is willing to give you a loan, that’s not easy. It’s a catch-22, but it’s one that can be remedied with help from a bad credit loan.

5. Everyone is considered

It doesn’t matter how low your credit score is, as long as you can afford the monthly repayments and are looking for a reasonable loan amount, you will be considered for a bad credit loan. We respect all borrowers at Ume Loans and provide the second chances that many traditional lenders refuse.

The Downsides of Getting a Bad Credit Secured Car Loan

Although there are some clear benefits of bad car credit loans, there are also some downsides to consider. For instance:

• Higher Rates: High-risk borrowers usually pay more to offset the increased probability of a default.
• Strict Terms: At Ume Loans, we offer bad credit loans of up to $25,000 over 18 to 60 months, but not all lenders are as flexible. You may be restricted to low loan limits and unfavourable lengths.
• Personal Risk: Are you ready for a loan? This is a question that all bad credit borrowers must ask themselves. There’s a reason you’re in that position, and now may not be a good time for a loan. Bad credit can always get worse if handled irresponsibly.

However, the upsides will outweigh the downsides for the majority of borrowers, and as long as you check the terms, work with a reputable lender, and keep meeting those payments, these loans provide the perfect solution.

How to get a Car Loan with a Bad Credit History

With Ume Loans, you’re just a click or a call away from a bad credit car loan:

1. Click “Apply Now” to start the application process.
2. Enter the details requested, including the amount you wish to borrow.
3. Speak with one of our Lending Specialists to go over your documents.
4. Get pre-approval for your car loan.
5. Choose your car and finalise the documents.
6. Complete the purchase and hit the open road!

Ready to Hit the Open Road?

A bad credit car loan is specifically designed for people in your situation. In modern-day Australia, most people can’t afford not to have a car. They need to drive to work or college, pick up the kids from school, or just visit the local supermarket. A car is a necessity, and as noted above, having bad credit doesn’t prevent you from getting one.

Ready to take control of your financial future? Look no further! At Ume Loans, we specialise in providing solutions for individuals with less-than-perfect credit. Our dedicated team is here to help you secure the loan you need, tailored to your unique circumstances. Don’t let bad credit hold you back any longer—take the first step towards financial freedom and speak to our lending specialists on: (07) 5443 3863