You may be able to apply for a car loan after a Part IX Debt Agreement, even if other lenders say no. Take a look at how we were able to help one of our clients upgrade his vehicle with a suitable loan from Finance One.
What is a Part IX Debt Agreement?
A Part IX (9) Debt Agreement is a legally binding agreement entered into between a borrower and their creditors, where the creditors agree to receive a sum of money from the borrower over an agreed-upon period of time, in order to settle debts without the borrower having to declare bankruptcy.
“Nobody explained the long-term ramifications to me or mentioned how hard it would be to borrow once the Part IX Debt Agreement had finished,” says Stephen.
In some instances, paying off a loan in accordance with the loan terms and conditions can be one of the best steps to rectify a bad credit history. It can sometimes help show lenders that you are a reliable borrower and can make consistent repayments on time. However, anyone with a bad credit history can find themselves in a chicken/egg situation — to improve your credit score, you may need a loan, but to get a loan, you may need a good credit score.
Applying for a car loan with bad credit after a Part IX Debt Agreement
Stephen looked for lenders who were able to look beyond his history of a Part IX Debt Agreement, and he also read reviews about different lenders, before speaking directly to Isaac from Finance One.
In their initial discussions, Isaac was able to help calm Stephen’s nerves about applying for car finance. From there, the process was quite easy.
After supplying the necessary information, including bank statements, employment history and identification, and meeting the lending criteria, the approval for Stephen came through in around a day*. Even Stephen’s car dealer made mention of how easy it had been to work with Finance One.
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“The repayments are very straightforward and Finance One made sure I could afford them before they finalised the transaction,” says Stephen. “Finance One explained everything in a way that was easy for me to understand.”
Now behind the wheel of a bigger and safer 2015 Isuzu MU-X, complete with roof racks, bull bar and light bar, Stephen and his family are looking forward to taking some longer road trips. “We have family who live around 13 hours away, so we will be able to just jump in and drive. If you have a nice car, you can enjoy that type of journey,” Stephen explains.
After experiencing personalised service and speaking directly with our finance consultants, “I would recommend them without a doubt,” says Stephen.
Do you need help with car loans for bad credit after a Part IX Debt Agreement?
If you have a steady income and proof of identity, you may be eligible to apply for a car loan or personal loan after a Part IX Debt Agreement from Finance One.
Apply Now*24-hour approvals are subject to satisfactory documentation being received to assess the application.
Normal lending criteria apply. Fees and charges are payable. Terms and conditions apply.
Disclaimer: The information above is of a general nature only and does not consider your personal objectives, financial situation or particular needs. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your particular circumstances. We do not accept responsibility for any loss arising from the use of, or reliance on, the information.
Finance One means:
Fin One Pty Ltd – ABN: 80 139 719 903
Australian Credit Licence: 387528
