Getting a car loan can be a bit of a headache, especially when you’ve got some bumps on your credit report.
If that’s you, then you might think you won’t be able to get a vehicle loan, but that’s not the case.
Bad credit car loans are made just for people who have less-than-perfect credit but still want to get behind the wheel of their own ride.
In this post, we’re diving into what bad credit car loans are all about, how they stack up against regular car loans, and how to get one.
Whether you need a solid ride for work, family stuff, or just for fun, we’ve got your back in getting you closer to financing that dream car, even if your credit isn’t great.
Why your credit history is important
Responsible lenders must check out your credit history before they can hand you a loan.
It’s all about making sure you can actually pay back what you borrow, so you don’t end up in debt and stressing out more about your finances.
They usually pull your info from one of three credit reporting companies to see what your credit looks like and what your score is.
Your credit score is a number that falls between 1 and 1000—1 being the worst and 1000 being excellent.
If you hit around 500, that’s decent, but most people fall somewhere between 300 and 850.
Anything below 300 is a pretty rough credit score.
If you want to know what your credit score is, you can contact one of the three credit agencies that do credit reporting in New Zealand: Centrix, Equifax and illion.
Beware of dodgy dealers
Some car dealers advertise as offering cars for people with a bad credit score.
That might sound like a good solution if you have a poor credit score, but it’s important to exercise caution.
By buying from one of these dealers, you could be severely limited in your choice of vehicle.
If the dealer only offers a small selection of vehicles, especially at significantly higher prices, this could signal that they are more interested in profit than helping you find a good deal.
These dealers often provide loans at high interest rates. While it’s expected that a bad credit loan may have a higher interest rate, some dealers inflate these rates excessively.
East Bay Finance offers a fairer alternative
The good news is there are lenders who provide bad credit car loans at fair interest rates and on affordable terms.
At East Bay Finance, we believe that having a poor credit history shouldn’t stand in the way of you owning a modern, reliable car.
With a bad credit loan from us, you’ll have the freedom to choose your car, while paying less in interest and fees.
Our car loans enable you to buy from anywhere you like, including TradeMe or Marketplace, auctions, or any car dealer.
With so many more options, you’re more likely to find the car you want at a good price.
How to get a bad credit car loan
East Bay Finance is an online loan broker, which means we arrange loans through our network of low-cost lenders.
When you apply using our simple 2-minute online application form, we’ll get in touch for some more information before putting your application in front of multiple lenders.
More lenders means more chances of approval!
After 1-2 hours*, we’ll call you back with some options and you choose the one that’s best for you.
We only work with low-cost lenders, which means you’ll pay a lot less in interest compared with high-cost lenders.
High-cost lenders charge more than 50% interest, but with us you won’t pay anything near that, even if you have bad credit.
With our flexible repayment terms from 6 months to 7 years, we can structure your loan to make it affordable for you.
While we can’t guarantee finance approval, we are able to find a positive outcome for our customers most of the time.
Bad credit loan approval depends on a few things like your income and current financial situation.
Our friendly loan advisors will listen to your story and understand your situation so they can help you get back on track.
Want to know how much you could borrow? Try our free online loan calculator.
Ready to take the next step? Apply now!
*Subject to responsible lending checks and criteria.
