Bad Credit Car Loans: Can You Get One?
If you have a bad credit history but need a new car, you may be worried about your chances of getting a loan.
Many people with poor credit score believe they won’t be able to get a loan, but that’s actually not the case.
There are ways to get a car loan if you have a bad credit history.
Keep reading to learn more about how to get a car loan despite your credit score.
Why your credit history matters
Responsible lenders are required to take your credit history into account before giving you a loan.
This is to make sure you can actually pay back the money you borrowed, and you won’t be saddled with debt that creates more financial stress for you.
To do this, lenders use one of three credit reporting agencies to find out about your credit history and what your credit score is.
Your credit score is a number between 1 and 1000, with 1 being the worst and 1000 the best.
A credit score of 500 is good, and most people sit between 300 and 850. Anything below 300 is a poor credit score.
Your credit score isn’t fixed
The good news is, that even if you have a bad credit score, it’s not set in stone. You can improve it!
Many finance and utility providers subscribe to “positive reporting”, which means when you make loan payments or bill payments on time and in full, points get added to your credit score.
Over time, if you keep up with your payments, your credit score will increase significantly.
Auckland Loans is a positive reporting provider, so when you take out a loan through us, you have the opportunity to rebuild your credit score.
Avoid making multiple loan applications
If you have bad credit but really need a car loan, you may be tempted to shop around various lenders, but this isn’t a good idea.
Every time you apply for credit a credit check will be done, and this is noted on your credit file. This doesn’t just apply to loan applications – it also applies to utility providers like phone and power companies.
Having multiple credit checks done on your file in a short period is a sign of “credit distress”, which means you could be having trouble paying your bills.
This is where using a loan broker like Auckland Loans is a great idea.
When you apply for a loan through us, we put your application in front of multiple low-cost lenders. You only make one application and we only do one credit check.
This is great for you because it won’t negatively affect your credit score. Also, having your application go to multiple lenders gives you a better chance of being approved!
How to get bad credit car loans
Auckland Loans specialises in helping people with bad credit get the cash they need.
We believe that just because someone has a bad credit score doesn’t mean they should be slapped with high interest rates and fees. We make borrowing fair.
When you apply for a car loan with Auckland Loans, we’ll be in touch to have a chat about your situation to find out why your credit score might be low, and talk through your options.
If affordability is a problem, we can make your loan more affordable by spreading the payments out over a longer period of time.
We’ll use our network of low-cost lenders to find a solution that works for you. We have high approval rates, even for people with bad credit.
Why choose Auckland Loans
Auckland Loans is your local team with world-class service.
We provide fast, easy loans without any of the hassle.
As a 100% online loan broker, you’ll find our process super easy. There’s no paperwork involved or annoying appointments to attend, you can do it all from wherever you are.
Our team works hard to find you affordable loans at competitive rates so you don’t pay more than you need to.
With interest rates from 9.95%* and loan terms from 6 months to 7 years, we can find the right solution for you.
Get in touch with our friendly loan advisors today for a free no-obligation chat about your needs.
*Subject to responsible lending criteria.
