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.
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!
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!
SECURED BAD CREDIT CAR LOANS
- 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.
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:
- Bring all your debts into one loan
- Spread your repayments out over a longer period so repayments are more affordable
- 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.