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Can I Get Caravan Finance With Bad Credit in Australia?

Apr 28, 2022 | Finance Tips

If you dream of hitting the open road with your own caravan in tow, but accessing finance due to bad credit has you worried, you’re not alone!
Heaps of Aussies are faced with bad credit for one reason or another, but it doesn’t need to be a barrier to accessing finance for your new caravan.
You might be surprised to learn that Finance One offers finance for caravans and campervans between $5,000-$75,000*. What are you waiting for? Read on to discover how we may be able to give you the keys to help you unlock your next big adventure.

Caravan Finance for Bad Credit explained

Accessing a loan for a caravan when you’ve got a poor credit history can seem out of reach, but not with Finance One. At Finance One, we offer loans for caravans, motorhomes, campervans and camping trailers with bad credit, by looking past your credit history and into your ability to make repayments. Here’s how we make caravan finance with bad credit work for many Australians:

Eligibility

To be eligible to apply for caravan finance with bad credit, you need to, as a minimum:
  • Be a permanent resident of Australia;
  • Have regular income (even if this includes receiving benefits from Centrelink);
  • Be looking to borrow between $5,000 and $75,000*; and
  • Be at least 18 years old.

Loan Terms

We offer finance terms anywhere from 3-7 years, which gives you plenty of time to repay the loan. Taking the flexible approach that we do, we also allow you to pay out consumer loans early (without charging an early termination fee) if your financial situation permits.
In fact, we pride ourselves on making loans adaptable for everyone, meaning that you have the flexibility to make extra payments onto your loan for a caravan any time your budget allows. You can also set higher regular monthly repayments that are within your price range.Apply for a Caravan Loan

Your credit score

Most loan applications include looking at your credit report via a credit check. However, we prefer to personalise our application process with a compassionate approach. Non-bank lenders like us have the benefit of working under an Australian Credit Licence without being bound by all the extra strict lending criteria that the major banks do.

Lending markets can be unforgiving when it comes to anything less than excellent credit history, and many lenders decline applications based on information obtained through credit reporting agencies alone. At Finance One, we are more interested in your individual circumstances and don’t rely purely on good credit; we look at your full credit profile, which often includes bad credit history.

Applying to multiple lenders and being rejected may only worsen your credit score.

Help protect your credit rating by choosing the right lender from the get go, who will work with you to get your loan for a caravan approved sooner.

We can give you the tick of approval in as little as 48 hours**!

Talk to our Team

Improving your chances of getting a Loan for a Caravan

It might surprise you to learn that there are a few things you can do to help improve your chances of being approved for a Loan for a Caravan with Bad Credit.
Settle any unpaid defaults If you know that you have some unpaid defaults lurking in your credit file, it’s a good idea to repay these before applying. This can help strengthen your application, because loans for bad credit can be inaccessible if you’ve got money owed elsewhere.
Keep your bank accounts in the green Accessing your bank statements is part of every lender’s process, and demonstrates your money management skills outside your credit history. Keeping your statements in ship shape for 6-12 months before applying for caravan finance with bad credit may be the difference between declining and approving your loan.
Opt for a Secured Loan for a Caravan A secured loan, regardless of who your lender is, takes some of the pressure off your application because it provides the lender with additional security to fall back on if you happen to default on your loan. Similar to how a car loan is secured, Loans for Caravans can be secured against the caravan.
Consider a used caravan Some motor homes can amount to the price you’d expect to pay for an actual home! Due to this, it can be a sensible option to consider whether a new or used caravan suits your needs best. A used caravan can be just as fulfilling as one direct from the factory with a much lower purchase price; we are also able to offer used caravan finance.
Put down a deposit Offering a deposit towards your van can lower the loan amount, which could help get your application across the approval line. You might even find that you get more competitive rates by supplementing your finance with your own funds.

With so many Australians buying caravans last year thanks to social distancing restrictions, you could score yourself a better deal by looking at buying a used caravan, privately. Many people often sell their vans once they’ve completed a big trip, so be sure to shop around.

Caravan finance for bad credit questions often asked

We know you’ll probably have questions, so let’s see if we can tick some off your list:

Can I get a loan for a caravan whilst receiving age pension benefits from Centrelink?

You may be able to apply for a loan for a caravan through Finance One if you receive Centrelink benefits, including the Age Pension.

Can I get a motorhome with caravan finance?

Your recreational vehicle options aren’t limited to purely caravans, with loans from Finance One. Many of our clients have accessed loans for caravans with bad credit to fund purchases of a camper trailer, pop top van, off-road van or campervan.

What is the interest rate on caravan finance for bad credit?

Interest rates vary from lender to lender. Using comparison sites can give you a rough idea of what your interest rate could be for caravan finance. However, interest rates are determined by lenders throughout the loan application, and the interest rate that you are set for your approved loan, may not necessarily be the comparison rate that’s advertised. Be sure you fully understand the terms of your loan agreement before signing.

Can I use a fixed interest rate?

Just like other loans, interest rates can be variable or fixed — we are happy to work with you to find the best solution for your individual needs.

Helping you Apply for a Loan

Our team would love to help make your dreams come true by helping you apply for a loan to get into your dream caravan or camper trailer, so contact us today to find out how or apply online now.Apply for Caravan Finance
*Loans between $50,000 – $75,000 must be asset backed. **48 hour approvals subject to satisfactory documentation being provided to assess the application. Normal lending criteria, terms and conditions, fees and charges 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. All new loan applications are subject to normal lending criteria. Fees and charges payable. Terms and conditions apply.

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WRITTEN BY

WRITTEN BY

Makala Elliott

Makala is the Marketing Manager at Finance One. She has worked in the Finance and Lending industry for over 10 years, gathering a wealth of experience. She is passionate about helping Australians get back on track with their finances by passing on her knowledge.

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