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Bad Credit Car Loan

Applicants who have a low credit score—or scores that fall within the poor credit score range—usually have trouble qualifying for personal or business car loans without a co-signer. If you wish to get a finance solution for bad credit car loan then you are at the right place. Your credit score is important if you want to buy a house, need a car loan, or are applying for a personal loan. Having a bad credit score can affect you by limiting your borrowing potential and making you appear less creditworthy to lenders. So, what is it and how can you get a bad credit car loan?

Below, we’ll discuss

• What a bad credit score is
• How to calculate if you have bad credit?
• Factors That Cause a Bad Credit Score
• Risks of Having a Bad Credit Score
• How to Improve a Bad Credit Score
• How to qualify for a car loan with bad credit
• Car Loan Finance that will get you on the road again

What is a bad credit score?

The following is the data from the three of the major credit bureaus in Australia that offer credit reporting services, and what they consider to be a bad or low credit score.

For Experian, a score between 0 to 549 is considered ‘below average’, and 550 to 624 is considered ‘fair’.

Source: Experian

For Illion, a score between 0 to 549 is considered ‘below average’, and 550 to 624 is considered ‘fair’.

Source: Illion

For Equifax, a score between 0 to 549 is considered ‘below average’, and 550 to 624 is considered ‘fair’.

Source: Equifax

How to calculate if you have bad credit?

In order to calculate your credit score, you need to request a copy of your credit report from one of Australia’s three credit bureaus. Contact these credit reporting agencies for your free credit report:

1. Experian: 1300 783 684
2. Illion: 132 333
3. Equifax: 138 332

Since different agencies can hold different information, you may have a credit report with more than one agency. Once you’ve got your credit report, you’ll be able to see where any slip-ups in the past have happened. Sometimes, you’re able to dispute these. Read below to learn how your credit score is calculated.

For example,

They will calculate:

• the amount of money you’ve borrowed
• the number of credit applications you’ve made
• whether you pay on time

Depending on the credit reporting agency, your score will be between zero and either 1,000 or 1,200. A higher score means the lender will consider you less risky. This could mean getting a better deal and saving money. A lower score will affect your ability to get a loan.

Alternatively, if you find the online enquiry procedure a little daunting, contact a financial advisor who can share with you your credit score details and also help you work on ways to improve it.

Get in Touch With Us For Obligation Free Advice today!

Factors That Cause a Bad Credit Score:

• Zero or Minimal credit history. If you have not maintained a long credit history, your credit score is likely to be lower than average.
• High credit utilization. The credit utilization ratio measures the percentage of credit you use versus your available credit. Because it makes up 30% of your credit score, using too much of your available credit can lower your credit score.
• Late payments. Your payment history accounts for 35% of your credit score so it’s crucial to make on-time payments. If you don’t pay your bills on time and they become 30-days past due, your creditor may report the late payment to one of the three major credit bureaus— Experian, Illion or Equifax.
• Collections.  A collection can cause a significant drop in your credit score, and you may have to wait up to seven years for it to be removed from your report. When you default on a credit obligation, your original creditor may sell your debt to a debt collector or collection agency. After your debt is sent to collections, it’s usually reported to the credit bureaus. A collection can cause a significant drop in your credit score, and you may have to wait up to seven years for it to be removed from your report.
• Bankruptcy. It can negatively affect your credit score for up to 10 years.