Bad Credit Boat Loans

Bad credit boat loans: for borrowers who want to put their credit history behind them and some water underneath them. Apply with Savvy today.

No obligation. It won't affect your credit score.
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, updated on July 3rd, 2024       

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Bad credit boat loans for Australian borrowers 

Lots of people run into problems with credit. Life doesn’t always go to plan, and when that happens, your finances are usually one of the first things to suffer – but a run of bad luck or bad planning doesn’t mean you’re dead in the water. Bad credit boat loans are a convenient way to access a boat and rebuild your credit reputation while you repay.  

How Savvy makes boat loans more accessible

Applying online is the fastest way to find the best bad credit boat loan deal – and that’s where Savvy excels. We help thousands of borrowers find their ideal loan provider by looking at where they’re at now and not concentrating on their credit history. We deal with a range of leisure finance lenders to help you find the loan you're looking for. 

Boat Finance Banner

What are the qualification requirements and what will I need?

Anyone who is over 18 and is a resident or citizen of Australia can apply for a bad credit boat loan. You’ll need to have a regular and ongoing form of income from a job or a pension and be able to demonstrate that with documentation:

  • Lenders will request a form of ID, such as your driving licence or passport
  • 2 recent payslips or tax returns if you’re self employed
  • You’ll need to supply a Centrelink Income Statement if you’re applying for a pensioner boat loan
  • The loan provider will need to see your last ninety days’ worth of bank statements and payslips if you’re employed 

Who can a bad credit boat loan help?

Many Australian borrowers experience issues connected with credit at some stage in their life, and it can narrow down your finance options, but it’s by no means the end of the world. Specialist financiers offer a range of products that can help you buy the things you need or want, and they’ll consider applicants with a broad selection of past credit problems:

  • If you’ve been declared bankrupt but have now been discharged
  • If you have defaults on your credit file, like missed or late credit card payments or unpaid utility bills
  • If you’ve been released from a Part IX Debt Agreement
  • If you’re new to borrowing and have no credit history

How do I apply for a bad credit boat loan?

Applying for a bad credit boat loan is both quick and easy through Savvy. Our friendly, expert brokers will ask you some quick questions about your borrowing needs and the nature of your past credit problems. From there, they’ll consult our extensive panel of specialist lender partners to determine whether any of our lenders can help you out. That improves your chances of finding a loan provider who’ll consider your application.

Savvy’s experienced brokers know the requirements of various lenders – and understand how applications work. That helps them narrow down your options immediately. It also means they can guide you through the required documentation and help you navigate the application process smoothly.

How to qualify for a bad credit loan and improve your score

Check your report

Lenders check your report to assess the level of past problems you’ve experienced. A surprising number of credit reports contain errors, such as forgetting to record payments and remove entries once debts have been settled. You can check your report for free once a year and every time you’ve been refused credit, so you should contact any organisations responsible for incorrect information.

Budget carefully

Lenders also base decisions on your ability to repay the loan. Only borrow what you need to reduce repayment amounts. The simplest way to do that is to set a budget and then stick to it. Take all your outgoing expenses into account and allow some room for the unexpected. You can use Savvy’s boat loan calculator to get a better idea about costs.

Use direct debit

Lenders will let you set up direct debits for loan payments, so it removes the need to remember each month, and you’re less likely to miss a payment. You can also apply that advice to utility and mobile phone bills. Keep that credit report clear of late payments and defaults, and watch your credit score rise.  

Ditch some debt

Bad credit boat loan providers check how much existing debt you’re in, and that influences how much they’re prepared to lend. Most of us keep credit cards we don’t need, and you may even have an overdraft you could easily pay off if you put your mind to it. The fewer credit products you have, the more borrowing power you get – plus it also reduces the possibility you’ll have trouble with repayments down the line.  

Avoid repeat applications

Don’t compare loans and providers using applications. Applying for too many credit products is bad for your borrowing prospects. That’s because every time a lender makes an enquiry about your credit report, it leaves an impression all loan providers can see. It’s better to apply for a single loan through Savvy than it is to use applications to shop for finance.  

Make repayments

Making sure you qualify for that boat loan and then keeping up with repayments will greatly improve your creditworthiness. Every time you pay off credit on time that improves your credit score. Having a loan isn’t a bad thing, and it’s a practical way to pay for major purchases that thousands of Aussies use every day.

All your bad credit boat loan questions answered

How does a bad credit boat loan work?

Boat loans are secured finance. That means the lender uses the vessel as collateral, which means the fixed interest rate doesn’t get too high because the loan provider’s risk is lower. You pick a term between one and five years and then make regular payments of equal value until the agreement ends and you own the boat.

What kind of boat can I buy?

With bad credit boat loans, you can buy anything you can afford. Whether that’s a prestige cruiser, a speed boat, or a fishing boat, bad credit boat loans are a viable way to get back on the water. You can even use one to buy a jet ski.

Do I need a deposit with bad credit boat loans?

Having a deposit will be advantageous for bad credit borrowers because it demonstrates to lenders that you’ve planned ahead and are more likely to pay off the loan on time; however, it’s not always necessary. Some lenders will ask if you’ve got equity in a property, although the loan gets secured against your boat, not your house.

Can I receive a loan to buy a used boat from a private seller if I have bad credit?

Yes – you aren't limited by the seller of the boat, provided the boat is in good enough condition to be able to be used as security for your loan.

If I’m self-employed, will I still be able to receive a bad credit boat loan?

Yes – self-employed workers with bad credit are still able to be approved for boat loans. While it may be slightly more difficult to prove your income, our team of brokers can help find the right loan for you.

Can I make extra repayments to my boat loan to pay it off earlier?

Depending on your lender, yes – some lenders will allow you to make extra repayments free of charge to contribute to your boat loan, which can save you on interest in the long term.

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