This loan is secured. Once your car is fixed, you get to keep your car as you pay off the loan. Because your car is vital in moving around, you still need to keep it in good working condition. Your car doesn't need to look old because it is old.
The lender will run a credit check, but getting approval doesn't matter if you have a bad credit or not. The loan amount is only for the percentage of the value of the car. The lender can repossess the vehicle if there is a failure to make payments.
How high is the interest rate? With this kind of loan, don't expect the interest rate to be low especially where the record of financial difficulty exists. You should also expect the interest achieved on the account to be less than the rate you pay on loan.