Australia is a wonderful country with a coastline of 60,000 kilometres; it has 12,000 beautiful beaches, sparkling seas and rivers. Australians love boating, and nearly one million Australians own a boat. As such, many of them opt for a boat loan to buy a boat, but some find it challenging to get a boat loan due to their bad credit score, as the banks will not approve loans for people with bad credit scores. Instead, specialist financiers help people looking for boat financing with a bad credit history. Meanwhile, bad credit is caused by several factors like overdue bills or defaulting on a previous loan payment.
Financing a Boat
Whatever be the type of boat, it is still a big purchase. And a boat loan is a secured personal loan that helps people buy a boat. It requires collateral, which is the boat that is purchased with the loan amount. And if people fail to repay the loan, the lender can take the boat.
So the benefits of having collateral are:
- Flexible repayment options.
- No deposit.
- Lower interest rates.
- Simple and quick approvals.
Eligibility for a Boat Loan
- The person applying for the loan should be 18 years or older.
- Only Australian citizens and permanent residents can avail of a boat loan.
- The loan applicant must be employed with a regular source of income.
Who Benefits From a Bad Credit Boat Loan?
- People who have been declared bankrupt but discharged after some time.
- People who have defaults on credit files like late or missed credit card payments or unpaid utility bills.
- People who are new to borrowing with no credit history.
Boat loans provide a simple way to purchase a new or old boat. Meanwhile, buyers need to save money over time to buy their dream boat without a loan, and it may take several years. But by availing of a loan, they get their dream boat immediately and pay it off in instalments over a few years.
What Boats Qualify for Bad Credit Boat Loans
Specialist lenders offer bad credit boat loans to finance a multitude of boats, including:
- Fishing boats
- Jet skis
- Commercial boats
Factors Considered in Bad Credit Boat Loans
Loan amount: Smaller loans do not require a credit check. But, larger loans need a credit check for loan approval.
Income and expenses of loan applicant: Lenders consider the income and expenditure of the loan applicant to ensure that they can repay the loan comfortably. Therefore, loans are approved when expenses are lower.
Security: Lenders prefer to offer secured loans to people who wish to buy a boat. As such, the buyers will have complete control over the boat only after the loan is fully paid.
Boat Loans with bad credit help people buy the boat of their dreams with easy finance. Meanwhile, most boat loans have an easy application, affordable rates and flexible terms. As a result, buyers always find a boat within their price range. Besides, the loans are tailored to meet people’s needs, and the financiers help buyers find the right boat.
So once the loan is approved, buyers get the ordered boats immediately and pay back the loan in instalments. As such, people seeking boat financing with bad credit are commonly found in Australia because the number of people who want to own a boat is steadily increasing. Though boats are used for fishing and other recreational activities, some prefer to live on a boat. Australians value their leisure time and spend more time outside their house, and boating will always remain one of the favourite outdoor activities of Australians.