People can find themselves in the ‘bad credit’ category for many reasons and this can prevent them from achieving quality loan offers. By ‘quality’ we mean at realistic, affordable interest rates and structured to suit their requirements. There are businesses that advertised bad credit loans and even guaranteed bad credit finance. A word of caution – assess the loan diligently as it is likely to be priced at very high interest rates, and contact Jade Boat Loans to discuss your options.
As specialist marine finance lenders, Jade is often in a position to assist people with bad credit boat loans. Our assistance includes using our full expertise and extensive contacts across the lending sector to source an affordable offer for your boat loan.
As Licensed Credit Providers under ASIC, we abide by the Responsible Lending Guidelines, which include that we not advise a person to proceed with a loan that is not suitable for them. So our consultants work hard to achieve a workable outcome for those who approach us with credit issues. We take a walk around the bad credit sphere to provide you with an overview of the sector.
Defining Bad Credit
Understanding what ‘bad credit’ means, will provide you with an insight into doing what you can to address a current situation and prevent future issues from occurring. Essentially bad credit is a category of loan applications not a loan type in itself.
Bad credit can also be referred to simply as credit issues, bad credit history, low credit score and similar terms. It arises primarily through the person defaulting on loan(s) or consistently failing to make scheduled payments for a range of services by the due date.
Credit card providers, utilities such as telecommunications and power companies and other suppliers can all report payment defaults. These are reported to a central credit reporting body and the default is recorded on your credit history which is then used to calculate your credit score. A low credit score is bad.
Addressing Credit Issues
Individuals can access a copy of their credit report from a number of sources including Experian and Equifax. You are permitted one copy free per year so don’t fall for companies offers that charge you just to access your credit report.
Once you have a copy, you can study the entries and if some are very old or clearly incorrect, there are steps you can take to have them removed from your credit history which will in turn improve your credit score and your chances of being offered credit. Refer to the Federal Government resources at https://moneysmart.gov.au/managing-debt/credit-scores-and-credit-reports for guidance.
The take-out is – whatever bills you have, you need to pay them on time in order to retain a good credit profile. If you are facing difficulties in making any payments, contact the business and discuss solutions rather than just ignoring the situation.
Sources for Loans
When it comes to sourcing boat loans, the major options are applying to banks and some finance companies yourself or using the services of lenders such as Jade Boat Loans to handle the loan for you. Banks and most finance companies have strict guidelines in regard to all types of loans. If you don’t meet their guidelines, you will likely not be offered a loan at any interest rate or on any terms.
There are however, lenders categorised in general as non-bank lenders that are more flexible in offering loans to individuals that don’t meet the bank-style requirements. Jade is accredited with both banks and non-bank lenders so we have way more options to source you a possible offer than if you approach the process yourself.
Your Jade consultant will listen to you and will advise on how best to structure your loan application. They will then approach the lenders that we feel will best match your requirements, to see if they are open to making you a loan offer. We then present the offer(s) we have sourced for your consideration.
What to Expect
If we are successful in sourcing you a boat loan offer with your bad credit application, the loan will be under either a Secured Boat Loan or an Unsecured Loan. Secured finance are the common form of loan so we will focus on that type.
Individual loans are assessed on an individual basis. The lender will assess the risk and make their own call on the interest rate they are prepared to offer and what, if any, special conditions they may attach to a bad credit boat loan.
In general, you may expect:-
- Higher interest rate than the one we advertise for personal boat loans.
- Loan limits may apply. Lenders may not be willing to offer you a loan for the full amount you are requesting. You may be asked to reduce that amount and that would involve say paying a deposit to the seller.
- Usually ‘no deposit’ loans are not available. Lenders are not usually prepared to offer a loan for the full purchase price of a boat for bad credit applicants.
- Additional security may be requested such as property or assets.
Moving Forward
If you do find yourself in the bad credit category, please feel free to contact Jade Boat Loans and have a discussion about the options and prospects we may be able to achieve for you. Discussions are confidential and there is no obligation to proceed until you have agreed to a loan contract.
To discuss bad credit boat loans contact Jade Boat Loans on 1300 000 003
DISCLAIMER: ALL INFORMATION PROVIDED IN THIS ARTICLE IS INTENDED AS GENERAL INFORMATION PURPOSES AND NOT AS AN EXCLUSIVE OR SOLE SOURCE FOR MAKING FINANCIAL DECISIONS. INDIVIDUALS SHOULD SOURCE INDEPENDENT ADVICE FROM A FINANCIAL ADVISOR IF THEY REQUIRE SPECIFIC DIRECTION IN RELATION TO THEIR CIRCUMSTANCES. CONTENT MATERIAL, DATA, SPECIFICS, PRODUCT FEATURES AND OTHER INFORMATION IS SOURCED FROM A RANGE OF SOURCES AND NO LIABILITY IS ACCEPTED FOR ERRORS OR MISINTERPRETATIONS OF SUCH DATA.
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