FAQs

Technically, bad credit loans and loans for discharged bankrupts may be viewed differently. But discharged bankrupts may be considered as high credit risk applicants by lenders, depending on how they have rebuilt their situation since bankruptcy.

Interest rates on all car loans are subject to individual assessments by lenders. Discharged bankrupts may be viewed as high risk and attract higher rates. If a discharged bankrupt can prove they have resolved previous issues, they may be offered a better rate.

When approved for a car loan, discharged bankrupts can select from Personal Secured Car Loan or the selection of commercial credit products.

Discharged bankrupts must wait a minimum 12 months after being discharged in order to be eligible to apply for car finance.

Discharged bankrupts will be required to provide 6 months’ worth of bank statements and payslips, details and debts and assets and proof they have resolved their bankruptcy issues.

Discharged bankrupt business owners when approved can select from Chattel Mortgage, Leasing and Hire Purchase for vehicle financing.

Select, specialist lenders will approve personal car loans for discharged bankrupts.

Paying a higher deposit to reduce the loan to value ratio may contribute to a better rate on a car loan for a discharged bankrupt. Using a broker can assist in sourcing the best offer from across many lenders without impacting the credit score.

Many lenders will take into account the reasons for the bankruptcy when assessing car loan applications from discharged bankrupts.

Discharged bankrupts may consider meeting repayments over the first 1-2 years of a car loan and then applying for refinancing at a lower rate. Showing a good payment history can contribute to a better rate. But the lender fees and charges associated with paying out the initial loan early and refinancing should be considered.