Can I get a car loan if I have a bad credit history or defaults?
The true answer is, Yes. However there are more things to consider. The lender will make a decision based on how many defaults you have, how long ago were they, how much are they for, do you have the ability to make future loan repayments? Every lender has a credit criteria process to ensure that the are abiding by responsible lending laws.
Yellow Loans specialize in bad credit car loans and bad credit car finance for people with a poor credit history. We understand that with so many services provided on credit, and the unfair position most consumers are placed in it is nearly impossible to keep a clean credit history.
Through our vast range of lenders and your honest approach we are able to place your application with the most suitable lender to try and have you approved as easy as possible which means that you will be in the drivers seat in no time at all.
How can we help?
We understand that good people go through bad situations, and sometimes a credit default can happen to anyone.
Since the start of the pandemic, there has never been a more stressful time and families and individuals, and the loss of employment, the closing of businesses and economic downturn has made it nearly impossible for many people to stay on top of their financial obligations.
What are the advantages of a getting approved for Bad Credit Loans?
There are a number of reasons why a bad credit car loan may be a great option if you have credit defaults.
You can buy a car
A motor vehicle has become an intricate and nearly vital part of every day life. Getting the kids to school, going to work and shopping are daily tasks that people need to attend to every day, and with the uncertainty of lockdowns and changes to transport requirements, getting from A to B is easiest in your own personal vehicle.
You can buy a newer car
By having the ability to pay off a car on repayments, you may be able to afford a newer vehicle, with all the safety and convenience features you need to transport the kids, get to meetings or work and go on a road trip.
You can prove that you are credit worthy
By being given the chance to have a loan, you can prove that you had some unavoidable financial circumstances by making your future loan repayments on time which might make it easier to get a loan in the future.
What are the disadvantages of a getting approved for Bad Credit Loans?
What's the Yellow Line?
A bad credit car loan may be an option if you have had previous credit issues. Each bank has its own lending criteria that you will need to meet and there are strict lending laws regarding the responsible lending to consumers.
In saying that, there are a number of lenders on our panel that consider bad credit car loans so it may be worth the exercise to discuss if you qualify with one of our lending specialists and to discuss your car loan options.
You can expect a few disadvantages of having defaults on your credit file and applying for a car loan. You may expect to:
Pay a higher interest rate than a regular car loan
Because the bank sees offering credit to a person with previous defaults listed on their credit file is a higher risk than someone with the proven ability to meet their regular financial commitments, they will tend to charge you a higher interest rate.
The type of car that you buy
The lender may restrict you to the age and value of the vehicle.
An in depth valuation of your ability to afford the regular repayments
Due to not being able to meet your previous financial obligations, the lender has an obligation to be satisfied that moving forward you can meet your monthly repayments.
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