If you want to get out and explore this great southern land in your own caravan, but your financial history is holding you back, Loantec is here to help. With more than 30 years of combined experience, we’re experts in all things finance. Including getting caravan finance with bad credit.
Our process makes getting finance quick and easy. After you’ve been approved, you’ll typically see the funds in 48 hours. But sometimes they’ll be in your account before the end of the day!
Simply fill in our pre-qualification form, and our Finance Technicians will explore all your caravan loan options to find you the best deal.
Loantec’s Top 3 Tips to Get the Best Caravan Loan with Bad Credit
The Loantec team specialises in everything finance and we’ve helped thousands of happy clients secure the financing they need. So to help, we’ve put together our top 3 tips for you to secure the best caravan finance, even with bad credit.
1. Put Yourself in The Best Financial Situation
When you apply for financing, lenders will base their decision on a debt-to-income ratio. Put simply, how much you make vs how much you owe.
Reducing your debt and repayments is the best thing you can do to improve your ability to get a loan. If you have multiple debts and you’re making multiple repayments, your available income will be lower. Restricting the amount you can borrow and increasing your risk in the eyes of lenders.
Owning a credit card is uniquely damaging to your ability to get a loan. The maximum limit on the card is considered to be your potential debt by lenders. You can lessen this impact by lowering your credit limit or better yet, cancelling your card.
If you have multiple debts and repayments, talk to our Finance Technicians about our debt consolidations. By combining all of your different repayments into a single, low-interest, fixed-rate payment, you might be able to reduce your expenses and increase your options for caravan finance.
2. Don’t Make Multiple Enquiries
One of the biggest mistakes you can make when you’re looking for financing is to make multiple enquiries in a short period. Several credit checks in a short timeframe will have a negative impact on your credit score and will lower your rating.
If you plan on making multiple applications to either improve your chances for approval or to compare the interest rates from multiple lenders, it’ll likely backfire. Several financial applications at once displays poor financial behaviour in the eyes of the credit reporting agencies. Furthermore, if you have multiple rejected applications on your file, it’ll have an even bigger impact on your credit score.
Loantec’s unique pre-qualification system allows us to find you the best finance for your caravan without needing to do a credit check. We only run a credit check after we find the best option for your situation.
3. Deciding Between a New or Used Caravan
When it comes to getting caravan and motorhome finance, there are benefits and disadvantages to getting a new or used vehicle.
When you get financing for a caravan, you’ll be getting a secured loan that’ll use the vehicle itself as collateral. A new caravan is far less likely to have any damage or mechanical issues. If you default on the loan, the lender can be confident that they’ll be repossessing a near new caravan that can be easily sold. On the other hand, used caravans can be in a whole range of conditions, from just driven off the lot to a step away from scrap.
Alternatively, used caravans have the advantage of typically being cheaper. And when you want to borrow money, the less you’re asking for the more likely you’ll get approval.
When a lender offers finance, they’re investing in you. The more confident they are that you’ll make the repayments, or they can recoup their losses if you don’t, the more likely you’ll be approved and get a good deal.
Get a Caravan Loan with Bad Credit
At Loantec, we don’t pre-judge you. We’ll work with you to secure the best financing solution to get your new caravan, no matter your situation. If you truly want to understand what your financial standing is, let our team explain what your credit score actually means and walk you through your lending options.
When you’re applying for caravan financing with bad credit, the big banks and traditional lenders will typically either reject your application or offer a ridiculously high interest rate. But here at Loantec, we think your current financial situation is more important than your bad credit history. Our team will help you overcome any barriers preventing you from getting your new caravan.
If your credit history is hurting your ability to get a loan for your new caravan, there are ways to improve your credit score. Sometimes negative marks on your record can be put there by mistake or without following the proper procedures. It’s possible to have these marks against your credit score removed. To learn about your options for improving your credit rating, get into contact with our Finance Technicians.
Ultimately, the best first step you can take to get your new caravan is to fill in our pre-qualification form. Our team will guide you through the rest of the financing process.
What You Should Include in Your Caravan Loan
When you’re looking to get caravan financing, be sure to include any additional expenses associated with owning a caravan when you apply for the loan.
Once you get a caravan, you’ll want to kit it out with all the extras you want. If everything is included in the caravan when your buy it, great. But if you want new appliances, solar panels, or a TV, be sure to cover it in the loan. You’ll need to make sure you can also cover the cost of registration and insurance.
Getting multiple loans in a short period is likely to have a negative impact on your credit score. So, it’s best to cover all your expenses with one loan. Just talk to our team about what you need, and we’ll provide you with the policy that best fits your situation.
If you’re looking to get caravan finance and you’ve got bad credit, we can help you out. We’ll take the time to work through your financial situation to find your best financing option. All you need to do is fill in our pre-qualification form and we’ll compare policies from 40+ lenders. Take the first step to get your new caravan today!