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

- Elijohn
We Make It Easy
Rates From 8.95%*
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 today with a bad credit car loan. Don’t let a bad credit score prevent you from owning a new car. Loansmart’s bad credit loans can enable you to drive away the car you choose, while paying less interest and loan costs. We’re a low cost lender that offers 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 5 years (10 with security)
  • Easy 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. 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, 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 right loan structure they can improve them.

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 is a low-cost lender which 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 8.95% – 29.95%.

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 so much pressure. Which 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’ll 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! Our eligibility criteria is a lot 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 up to 5 years (10 with security).

For more details on our loan terms you can read our loan terms & conditions.

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 cash 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 required.

However, If you do not qualify for an unsecured loan, and do need security to get your loan approved, our secured loans require pre – approval of 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 ID (so we can verify it’s you).

We will also need access to your bank statements as proof of regular income, 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 Loan Consultants will get in touch to discuss the details of your loan with you such as repayment terms & fees.


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

  • Borrow up to $50,000 unsecured
  • Spread your repayments over 6 months to 5 years
  • No drawn out bank process or tiresome paperwork (easy online loan application process)

As 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 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 our 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.

Make it easy

No need to scan and sign, fill in and upload lengthy documents. All we need it Photo ID and access to your 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. Most of our team have personal loans too!

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

Bad Credit Debt Consolidation Loans

Another product we offer our valued 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. The last thing you want is to default on your loans monthly payments, 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 a highly reputable low-cost lender that’s been lending since 2008. Our experienced lending specialists work hard to get you a great 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 8.95%*

Our competitive personal loan rates range from 8.95% - 29.95%. *Subject to credit criteria and the credit profile of the applicant.

Longer Repayment Options

From 6 months to 10 years; up to 5 years for unsecured personal loans and 10 years for secured personal loans.

Faster Approval Process

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

Same Day Payment*

If you e-sign your loan documents by 3pm on a business day, we’ll deposit funds in your account the same day*. Depending on your bank, you’ll receive cash 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 $50,000 Unsecured & Up To $100,000 Secured

Borrow between $1,500 to $50,000 without having to provide security. Personal Loans of up to $100,000 can be secured using a caveat or second mortgage. We can also use vehicles as security, so long as they’re in good condition.
Get the complete package from a team that genuinely cares, and works hard to provide better loan options for you. Get Loansmart!