Very happy with the outcome of my application with Loansmart. After another institution declined my loan due to bad credit, Loansmart approved it on a better rate!”

- Elijohn
We Make It Easy
Rates From 9.95%*
We Say Yes More Often

More options for more chances of success

Bad Credit Car Loans

Need a car loan but have a bad credit history?

There’s a good chance we can help you arrange a bad credit car loan today. Don’t let a bad credit score prevent you from owning a new car. A bad credit loan from Loansmart can enable you to drive away the car you choose, while paying less interest and loan costs. We work with low cost lenders that offer lots of options, even to people with bad credit. .

  • Faster approval process & payments
  • Lower interest rates (we are not a high cost lender)
  • More options for more chance of success
  • Affordable, fixed loan term options of up to 7 years
  • Easy & free online loan application process

Bad credit car loans are quick and easy with us. We provide two options: secured loans and unsecured loans. Which is best for you depends on your personal situation and credit score.

What are Bad Credit Car Loans?

Bad credit car loans are personal loans specifically for individuals with a bad credit rating to buy a car. Unlike other loan companies or banks, we believe in second chances.

We’re interested in your story and the details of your current situation. We take time to find out why you have a bad credit score, and how your financial situation has improved and do everything we can to help you!

Many people have bad credit scores, but with a second chance and the proper loan structure, it can be improved.

More options for more chances of success

Loansmart wants to give our clients some breathing room, not place them under more pressure. We strive to set you up for repayment success, not failure. 

Buying A Car With Bad Credit

Loansmart arranges lows with low-cost lenders, this means we don’t charge high-interest rates for any of our loans, and yes that includes Bad Credit Car Loans. Our loan rates range from 9.95% – 35.50%.

High-cost lenders charge interest rates of above 50%, so you end up paying a lot more in loan costs. High-cost lenders typically offer very short loan periods, which makes it harder to meet your loan repayments. Credit defaults are the last thing you need if your score is low.

By taking out a lower-cost loan over a longer period, you’re not putting yourself under unneeded pressure. This means you’ll be more likely to meet your repayments on time and improve your credit report.

If you have a poor credit history, you may pay towards the upper end of our interest rate range, but this is still a lot lower than other loan companies that charge 50% or more!

Do I need security? Will I be approved?

Bad credit loan approval is dependent on factors such as your disposable income and financial situation. Not all borrowers will meet our requirements, but most do! The eligibility criteria we can offer our customers is much broader than other lenders. We want to help and will do what we can to get your loan approved. In some situations this will require you to provide security, we call these secured loans.

We want to give our clients some breathing room, not place them under more pressure. We also offer flexible loan terms of up to 7 years.

Can I pick my own car?

Other bad credit car loan companies require you to pick from a list of (often not so nice) vehicles. With Loansmart you decide. If you find you something on TradeMe, or want to bid at an auction, we provide the funds for you to do so.

We don’t think a poor credit history should limit your choice. That’s why when you get an unsecured bad credit car loan with Loansmart you have full control over what car you pick, no pre-approval is required.

However, If you do not qualify for an unsecured loan, and do need security to get your loan approved, our secured loans will require pre-approval to confirm a maximum loan size and your chosen vehicle.

How do I apply for a Bad Credit Car Loan?

It’s easy! Simply fill out our quick online application form and provide us with a copy of your Photo ID (so we can verify it’s you).

We will also need access to your recent bank statements as proof of regular income & expenses, but we make that super easy too and send you a secure link that enables us to view them online.

Then one of our friendly Personal Loan Consultants will get in touch with you to discuss the details of your application and try to have funds approved!


At Loansmart we focus on meeting your needs, without making you jump through hoops!

  • Borrow up to $75,000 unsecured
  • Spread your repayments over 6 months to 7 years
  • No drawn-out bank process or tiresome paperwork (easy & free online loan application process)

With an Unsecured Loan, you will be a cash buyer. You can negotiate with the seller knowing your vehicle finance is sorted. You can purchase privately through Trademe or through a dealership.

What’s more, you get the full say over your vehicle options. You don’t need us to agree to your choice, so you’re well and truly in the driver’s seat!


  • Borrow more than $50,000
  • Or less than $50,000 (if your personal credit score or financial situation requires it)
  • Pay less in interest* (we are a low-cost lender)

For loans exceeding $50,000, we’ll need to use your car as security. The process is a little more involved, but we move fast to get your finance approved and payment to you ASAP.

As part of the Loansmart service, we check the vehicle ownership for you to make sure there is no money owed (or stolen). We also ensure that the car loan proceeds go to the right person and that once purchased the vehicle transfer paperwork is completed. The car needs to be ‘acceptable’ to us first, and so you do need pre-approval before purchasing.

If you’re struggling to meet our lending criteria, then using your car as security may be the easiest way to get approval. One of our Loan Consultants will assess your application and explain your options.

For more details on Secured Loans you can phone us on 0800 255 155.

Smarter Loans >>> Faster

We care about our clients

If you’ve struggled with paying bills or had a bad credit score in the past, the last thing we want to do is put you under more stress. Instead, we help by finding loan repayments you can afford, with fairer fees and lower interest rates. Time payments to when you get paid, and spread your repayments out over a longer period so they’re easier to meet. Giving yourself a bit of ‘wriggle room’ can help ensure you don’t miss repayments in the future, so you can rebuild your credit score!

To provide you with the best lending experience we


Move fast

Most loans can be approved and paid the same day*, so long as we have everything we need from you before 3pm.
*Subject to responsible lending checks and lending criteria.

Make it easy

No need to scan and sign, fill in and upload lengthy documents. All we need is Photo ID and recent bank statements (we make that super easy and secure too!).

Make it enjoyable

We keep you updated every step of the way, so you always know where you’re at with your application.

Make it affordable

We work hard to find you the best deal we can. After all, we know what a difference those extra savings can mean.

Get a fairer deal, faster from a professional team that cares

Bad Credit Debt Consolidation Loans

Another product we offer our customers is bad credit debt consolidation loans. If you’re struggling to keep up with multiple payments, or paying high-interest rates then this solution can help.

A debt consolidation loan enables you to:

  1. Bring all your debts into one loan
  2. Spread your repayments out over a longer period so repayments are more affordable
  3. Pay low-cost lending interest rates instead of high

By setting yourself up for success, you can meet your repayments on time and improve your credit score. Want to know how much you could save in interest?

A lot of people think they have a bad credit score, but …

In actual fact it’s not that bad at all. If you need a bad credit car loan, it’s really important you don’t pay more than you have to. Some people take the first loan they can get thinking that due to their poor credit score they may not have other options.

Sadly, they end up paying huge interest rates and fees resulting in high repayments. The last thing you want is to struggle with repayments and default on your loan, and if lending costs are high it’s easy to do. Be sure to give us a call first on 0800 255 155.

Not all situations will meet our lending requirements; however, once we have the details of your individual circumstances we do everything we can to help. Complete our online application form to get started.

Why Loansmart

Don't Pay More Than You Need

Loansmart is highly reputable in the personal lending industry and has been providing services since 2008. Our experienced lending specialists work hard to get you the best deal.

Benefit from fairer terms, fees, interest rates and a team that cares.


We Say Yes More Often

Applied elsewhere but been declined? Loansmart provides more options than other lenders. With more options, you have more chances of getting your personal loan approved.

More Options Tailored For You

Pay down debt faster and more affordably with lower fees and interest rates. Don’t pay more than you need to and get more options.

Interest Rates From 9.95%*

Our competitive personal loan rates range from 9.95% - 35.50%.
*Subject to credit criteria and the credit profile of the applicant.

Longer Repayment Options

With loan terms from 6 months to 84 months, tailored to your needs.

Faster Approval Process

By providing us with your photo ID and recent bank statements online, your personal loan application could be approved in just 1 - 2 hours.
*Subject to responsible lending checks and lending criteria.

Same Day Payment*

*If you complete the online contract and any additional steps before the end of the day, then funds can be paid to your account. Depending on your bank, you may receive the funds that day or the next morning.

100% Easy, Online Process

No need to print, scan or upload statements. We simply send you a secure link that authorises us to view your statements online.

Borrow up to $75,000 Unsecured or more with a Secured Loan

The amount you can borrow and whether or not security is required is subject to standard lending criteria. We can use property (Caveat) or motor vehicles as security on a loan to increase the loan size, rates and terms.
Get the complete package from a team that genuinely cares, and works hard to provide better loan options for you. Get Loansmart!

*Subject to responsible lending checks.