From week-long camping adventures to taking your dream road trip around the countryside, nothing says Aussie freedom like a caravan. If you’re thinking about investing in a caravan to take that trip of a lifetime, you’re likely going to need some fast financing.
However, if you haven’t had the best of luck with credit in the past, you might be wondering, “Can I get caravan finance with bad credit?” In this blog, we’ll define caravan financing and how you may qualify for a loan to fund your caravan purchase, even if you have a poor credit history.
What is caravan finance?
Caravan finance is a loan or credit product that can only be used to finance the purchase of a caravan, camper or other specific vehicle. Just like a regular car loan, a caravan loan features an interest rate, a fixed repayment period and, depending on your lender, fees or other handy loan features.
At Finance One our loans can be used to fund a number of vehicle purchases, such as:
- Caravans
- Off-road caravans
- Pop-top caravans
- Motorhomes
- Camper trailers
- Campervans
Finance One customers could apply to borrow between $5,000 to $75,000*, giving them great borrowing flexibility to purchase their ideal caravan or camper.
Qualifying for a bad credit caravan loan — what you need to know
Unsure of whether you are eligible for a bad credit caravan loan? It happens more often than you think! With so many different lenders out there, knowing where you stand as an applicant can be tricky.
Qualifying for bad credit loans typically involves meeting certain criteria that differs from those required for conventional loans. While specific requirements may vary among lenders, we’ve outlined some common qualities or circumstances that may make someone eligible for bad credit loans after being rejected by other lenders:
- Low credit score — Most loan applications require a check of your credit report. One of the biggest indicators that you may qualify for a bad credit loan is having a low credit score, as these loans are designed for individuals with poor or limited credit history. Having a low credit score, usually below a certain threshold, is a common reason for being denied by traditional lenders, which brings us to our next point.
- Continuously rejected from banks and other lenders — Another big sign that you may qualify as a bad credit loan customer is if you have a history of being rejected for car loans from traditional lenders, such as banks or credit unions. Lenders consider many factors when reviewing loan applications, such as a person’s credit score. If yours is less than satisfactory to the lender, they may choose to reject your application.
- Insufficient credit history — Some applicants, particularly young adults or those new to the country, may have a limited credit history, making it difficult for traditional lenders to assess their creditworthiness. Non-Bank Lenders like us may consider alternative factors, such as employment stability and income, to evaluate their loan application.
- High debt-to-income ratio — A high debt-to-income ratio, which means a significant portion of an individual’s income is already committed to paying off existing debts, can make it challenging to qualify for loans from traditional lenders. Non-Bank Lenders like us may be more lenient in this regard.
If any of these factors apply to your financial situation, you may be recognised as a bad credit applicant. This isn’t something to be wary of, 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 to assist where possible to make your travels happen.
Can I get caravan finance with bad credit? The Finance One application process.
We understand how complicated caravan loan applications can be, particularly when you’ve already encountered rejection. That’s why we’ve kept our application process short and our eligibility criteria easy to understand.** To qualify for a Finance One caravan loan, applicants must meet the following criteria:
- Be at least 18 years of age;
- Be a permanent resident of Australia;
- Receive a regular income and have at least three months of bank statements; and
- Are looking to borrow between $5,000 and $75,000*
Ready to apply? Here's how it works:
- Complete an online application or call us on 1800 346 663 for a caravan loan and submit the required documents, such as your driver’s licence, bank statements, proof of steady income and employment.
- Our loan officers will review your application and consider your financial situation.
- We’ll endeavour to contact you with a final decision within 48 hours.*
Fair and accessible financing starts with Finance One
Don’t let a bad credit history hold you back from what you want most out of life. For too long, we’ve seen Australians miss out on major life milestones due to an inability to secure financing, so we decided to do something about it.
Finance One is a responsible and inclusive lender, dedicated to providing accessible and open loan solutions. We’re big on empowering our customers through our loans and offer personalised solutions to all successful applicants. From flexible repayment options based on your budget to no penalties for early repayments on consumer loans, we do everything in our power to ensure a positive and practical loan experience.
Find out if Finance One can help make your dream of purchasing a caravan a reality by contacting us today. Or, if you’re in the market for another type of financing option, browse our vehicle financing solutions.
Normal lending criteria apply. Fees and charges are payable. Terms and conditions apply.
Finance One means:
Fin One Pty Ltd – ABN: 80 139 719 903
Australian Credit Licence: 387528
*Loans between $50,000 – $75,000 must be asset backed.
**48 hour approvals subject to satisfactory documentation being provided to assess the application.
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 advice regarding your legal, financial, taxation or other needs, 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 loan applications are subject to normal lending criteria. Fees and charges payable. Terms and conditions apply.
