Driving Forward: Your Guide to Bad Credit Car Loans

Life throws curveballs, and sometimes those curveballs can hit your credit score. If you’ve faced financial challenges in the past, you might feel like getting a car loan is an uphill battle. You may even be asking yourself the question “how do I even get a car loan with bad credit?”. The good news is here at Fox Finance Group we’ll help guide you to success.

We understand that your past credit history doesn’t always reflect your current financial stability or your desire to move forward. We specialise in bad credit car loans, helping everyday Australians get into the car they need.

What Are Bad Credit Car Loans?

Simply put, bad credit car loans are designed to help individuals with less-than-perfect credit history. This could be due to missed payments, defaults, or even bankruptcies in the past. While many banks might automatically decline your application because of these marks, specialised lenders like the ones we have on our panel, look beyond just your credit score.

Lenders who specialise in bad credit loans value your financial situation, your repayment ability, and your commitment to achieving a fresh start. This means you’ll still have options for your credit challenged auto loan.

Why Do People Need Bad Credit Car Finance?

Some people end up with bad credit car finance because issues in life happen, and it can lead to a poor credit score for various reasons, such as:

No matter the reason, having a low credit score shouldn’t stop you from getting reliable transportation, especially if a car is essential for your job, family, or daily life. As part of our assessment process we will provide you with a free credit score check. Here is where you will be able to see where your credit stands and we can assess how we can help.

If you are looking for a deeper dive on understanding your credit score check out our blog “Guide to Understanding Your Credit Score” where we break down everything you need to know, from what is a credit score to how you can improve yours.

Getting Your Documents Ready: Preparing Your Bank Statements

When applying for bad credit car loans, your bank statements are one of the most important documents you can provide. Think of them as a snapshot of your financial life. Lenders use them to understand your income, spending habits, and how you manage your money. This helps them decide if you are able to afford your loan repayments.

Here’s what lenders typically look for and how you can prepare:

• Recent Activity:You’ll usually need to provide your bank statements for the last 90 days (or 3 months). This gives your lender a current overview of your finances.
• Income and Expenses:Lenders want to see your regular income going in and your regular bills coming out. This helps confirm your earnings and your ongoing commitments. To help with tracking your spending and expenses, Moneysmart provides three easy steps to spend less and save more with their article “Track Your Spending.”
• Consistent Habits:Lenders prefer to see consistent spending patterns. Try to avoid too many unusual or large transactions just before applying.
• Avoid Excessive Gambling or Cash Withdrawals:Excessive or consistent gambling and ATM cash withdrawals can raise red flags for lenders, suggesting financial instability. Be prepared to explain the purpose of any significant cash withdrawals. Lenders understand occasional gambling or cash withdrawals are normal; it only becomes an issue when consistent.
• No Excessive PayDay Loans or Buy Now Pay Later (BNPL):While some use of these facilities is common, too many recent transactions or open accounts can suggest you’re relying on short-term credit, which lenders might see as a higher risk for a bad credit car finance loan. Check out the new BNPL update by reading our blog “What New BNPL Means for You.”
• Arrangement of Defaults:If you have any defaults on your credit report, showing they are under arrangement and paid well or have an arrangement in place for them on your bank statements is a positive sign. It shows good character and that you’re taking steps to address past issues.

It’s a good idea to have a pre-look through your statements and make sure everything is accurate in reflecting your income and regular expenses. If there’s anything unusual, be ready to explain it to your lending specialist. Being open and honest about your financial situation, supported by clear bank statements, can significantly strengthen your application for credit challenged auto loans.

The Simple Steps to Your New Car:

Applying for a bad credit car loan might seem complicated, but we’ve made the process incredibly straightforward with our six simple steps designed to get you behind the wheel as quickly and smoothly as possible:

1. Begin Your Application: Our process starts with our quick online form. Just tell us your loan amount and purpose, answer a few questions, and hit “apply.” It only takes a few minutes and you won’t need to provide a heap of documents upfront.
2. Chat with Your Lending Expert: Once you submit, your dedicated lending expert will connect with you. They’ll review your application and ask about your unique situation to help you secure fast, easy, and stress-free financing without any judgement, ever.
3. We Find Your Best Lender: With access to 50 plus lenders we will find the perfect fit for your business’s bad credit car loan, ensuring you get the best possible deal.
4. Guided Through Approval: After you choose your lender, we will work directly with the lender and communicate with them for you. We will help in gathering any additional documents needed. We will be right there for you helping you avoid the hassle of chasing details or understanding the complex financial terms alone.
5. Finalise Your Loan Contracts: Once you’ve found the ideal car for your business, we will prepare all documentation and send it to the lender for loan contracts to be created. When your loan contracts are ready, we will explain every detail, including fees, and answer any questions.
6. Sign and Drive: Once you’re happy with everything and all your questions are answered, you’ll sign your loan contracts. After that, your loan will quickly settle. This means the money will be sent directly to the car dealer or private seller. Then, you can pick up your new car and get your business moving!

Your Car Awaits: Apply Today!

Don’t let past credit issues hold you back from owning the car you need. We’re here to help you navigate the world of bad credit car loans and find a solution that works for you.

Apply now, even if you think your credit isn’t perfect, just give it a try!