If you are a single mother, can you get a car loan with bad credit? In Australia, different types of lenders are available for single parents. There are no restrictions; you can use this loan amount for any vehicle, like a motorbike, truck, car, etc.
Applying for a car loan with single parents is a small deal because there is an easy and simple application process. Here, we discuss the qualification criteria for a car loan as a single parent, the available car loan options, and other important information. How will you get a car loan with a bad credit history?
What is a single-parent car loan with Centrelink benefits?
Unfortunately, if you live with your children as a single mother, then you are already facing too many issues in your life. For example, it is hard to manage children’s schools, go to the market, go with children on a picnic, and enjoy other activities without a car, which is implausible in Australia. So because of this struggle, you need a car for your children to make your life easy.
In Australia, different lenders can provide loan options up to $50000 with a bad credit score. Following your circumstances, and especially for Centrelink customers, they will provide suitable car loan options.
Who gets accepted with a car loan for a single mother?
Single-parent car loan options for Centrelink customers are an easy process offered by lenders because they know about your struggle. So prove your suitable income stream; even if you are getting parenting Centrelink payments, it will consider your income by the lenders. Single parents will be considered and behave like other loan-seekers with bad credit and Centrelink payments. Different lenders will consider your loan application even if you have these characteristics:
- You are getting disability or parenting pension benefits.
- You have been denied credit from other sources.
- You have been turned down for credit by other lenders.
- You need a better credit record.
- You are getting income support from Centrelink.
What are the eligibility criteria, and how do they work car loan
- Your age must be more than 18 years old.
- Your residential status must be Australian.
- You have a child, and every child is less than 18 years old.
- You are getting Centrelink parenting payments.
- Submit your last 3 months’ utility bills paid receipt.
- Submit your bank statement from the last 90 days and the income you received into your account.
- Your income must be $1,920 per month and weekly $480 into your bank account(it also includes Centrelink payments and another source of income)
After you submit your application, lenders will start the process on your site. So there are 3 main steps.
Top strategies for boosting your odds of getting approved for a car loan with poor credit
How much can you get a car loan for a single mother with Centrelink payments?
Your ability to borrow will be influenced by several factors, including:
Single-parent car loan with bad credit finance options
It depends on different factors when comparing your options, so here we discuss these factors:
Different types of car loans for single parents with bad credit in Australia
- She secured car loans for single parents.
- Car loan with Centrelink benefits for single parents
- Low documents car loan for a single mother
- Guarantor car loans for single mother
Available different lenders for single mothers’ bad credit loan options in Australia
Loans.com.au:
- Loan Duration: 3 to 7 years(Variable)
- Amount limits: $5,000 to $150,000
- Interest rates: 6.24% to 7.74%
- Comp.Rates (p.a.): 7.36% to 8.85%
- Application Fee:$400
- Monthly fees:$8
- Monthly repayments:$630.83(depends on your loan amount)
Stratton Finance car loan:
- Loan Duration: 1 to 7 years(Fixed)
- Amount limits: $10,000 to $300,000
- Interest rates: 6.52% to 18%
- Comp.Rates (p.a.): 6.95% to 23%
- Application Fee:$395
- Monthly fees:$0
- Monthly repayments: $625.27(depends on your loan amount)
OurMoneyMarket car loan:
- Loan Duration: 1 to 7 years(Fixed)
- Amount limits: $2001 to $75,000
- Interest rates: 6.57% to 18.99%
- Comp.Rates (p.a.): 6.57% to 18.99%
- Application Fee:$250 min
- Monthly fees:$0
- Monthly repayments:$622.82 (depends on your loan amount
IMB New Car Loan:
- Loan Duration: 1 to 7 years(Fixed)
- Amount limits: $2,000 to $125,000
- Interest rates: 6.24%
- Comp.Rates (p.a.): 6.59%
- Application Fee:$274.78
- Monthly fees:$0
- Monthly repayments:$619.01(depends on your loan amount)
RACV Car Loans:
- Loan Duration: 1 to 7 years(Fixed)
- Amount limits: $5,000 to $150,000
- Interest rates: 7.29% to 16.99%
- Comp.Rates (p.a.): 8% to 17.77%
- Application Fee:$499
- Monthly fees:$0
- Monthly repayments:$635.67(depends on your loan amount)
OurMoneyMarket Used Car Loan:
- Loan Duration: 1 to 7 years(Fixed)
- Amount limits: $2001 to $75,000
- Interest rates: 6.57% to 18.99%
- Comp.Rates (p.a.): 7.19% to 21.78%
- Application Fee:$250 min
- Monthly fees:$0
- Monthly repayments:$622.82(depends on your loan amount)
Stratton Finance Used Car Loan:
- Loan Duration: 1 to 7 years(Fixed)
- Amount limits: $10,000 to $300,000
- Interest rates: 6.52% to 18%
- Comp.Rates (p.a.): 6.95% to 23%
- Application Fee:$395
- Monthly fees:$0
- Monthly repayments:$625.27(depends on your loan amount)
Loans.com.au-Variable Rate Used Car:
- Loan Duration: 3 to 7 years(Variable)
- Amount limits:$5,000 to $150,000
- Interest rates: 7.74% to 7.74%
- Comp.Rates (p.a.): 8.85% to 8.99%
- Application Fee:$400
- Monthly fees:$8
- Monthly repayments:$644.82(depends on your loan amount
RACV Used Car Loans:
- Loan Duration: 1 to 7 years(Fixed)
- Amount limits: $5,000 to $150,000
- Interest rates: 8.49% to 16.99%
- Comp.Rates (p.a.): 9.21% to 17.77%
- Application Fee:$499
- Monthly fees:$0
- Monthly repayments:$647.01(depends on your loan amount)
Verified Lending Used Car Loan:
- Loan Duration: 1 to 7 years(Fixed)
- Amount limits: $10,000 to $200,000
- Interest rates: 7.1% to 18.99%
- Comp.Rates (p.a.): 8.06% to 22.99%
- Application Fee:$395
- Monthly fees:$0
- Monthly repayments:$630.67(depends on your loan amount)
NRMA New Car Loan:
- Loan Duration: 1 to 7 years(Fixed)
- Amount limits: $5,000 to $130,000
- Interest rates: 7.29% to 16.99%
- Comp.Rates (p.a.): 8% to 17.77%
- Application Fee:$499
- Monthly fees:$0
- Monthly repayments:$635.67(depends on your loan amount)
NRMA Used Car Loan:
- Loan Duration: 1 to 7 years(Fixed)
- Amount limits: $5,000 to $130,000
- Interest rates: 8.49% to 16.99%
- Comp.Rates (p.a.): 9.21% to 17.77%
- Application Fee:$499
- Monthly fees:$0
- Monthly repayments:$647.01(depends on your loan amount)
Loans.com.au-Fixed Rate Used Car < 3 years
- Loan Duration: 3 to 7 years(Fixed)
- Amount limits: $5,000 – $150,000
- Interest rates: 7.59% to 9.09%
- Comp.Rates (p.a.): 8.7% to 10.34%
- Application Fee:$400
- Monthly fees:$8
- Monthly repayments:$643.41(depends on your loan amount)
Advantages
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FAQ’s
Conclusion
Single mothers receiving Centrelink payments and facing bad credit challenges can still access car loans in Australia. While the process is simplified and tailored for those with unique financial circumstances, it’s essential to assess the available options carefully. Consider interest rates, loan terms, and hidden fees to ensure the loan aligns with your budget. Additionally, improving your credit score and maintaining financial stability can boost your chances of approval and reduce long-term financial strain.
