Bad credit car loans in New Zealand – what you need to know
If you have bad credit, you might think that getting a car loan in New Zealand is out of the question. But the good news is that there are plenty of lenders who are willing to give you a loan, even if your credit isn’t perfect.
Of course, you will likely pay a higher interest rate than someone with good credit. But if you shop around and compare rates, you can find a bad credit car loan that is reasonable.
Here are a few things you need to know about bad credit car loans in New Zealand:
1. There are plenty of lenders who offer them
If you have bad credit, there’s no need to worry – there are plenty of lenders who offer bad credit car loans. And, if you shop around, you can find a loan that has a reasonable interest rate.
2. The interest rate will be higher
Because you have bad credit, the interest rate on your loan will be higher than someone with good credit. However, if you compare rates from different lenders, you can find a loan with a reasonable interest rate.
3. You might need a guarantor
If your credit is really bad, you might need to find a guarantor for your loan. A guarantor is someone who agrees to make the payments on your loan if you can’t.
4. You might need a larger deposit
If you have bad credit, you might need to put down a larger deposit than someone with good credit. However, this is not always the case – some lenders will offer loans with no deposit required.
5. The loan term will be shorter
Because you have bad credit, the loan term will likely be shorter than someone with good credit. However, this is not always the case – some lenders will offer loans with longer terms.
6. You might need to get a secured loan
If you have bad credit, you might need to get a secured loan. This means that you will need to put up collateral, such as your car, to secure the loan.
7. You might need to pay monthly fees
If you have bad credit, you might need to pay monthly fees. These fees are often called “maintenance fees” or “account keeping fees”.
8. You might need to pay a higher interest rate
If you have bad credit, you will likely pay a higher interest rate than someone with good credit. However, if you shop around and compare rates, you can find a bad credit car loan that is reasonable.
9. You might need to provide proof of income
If you have bad credit, you might need to provide proof of income. This is to show the lender that you can afford the loan repayments.
10. You might need to provide proof of employment
If you have bad credit, you might need to provide proof of employment. This is to show the lender that you have a steady income and can afford the loan repayments.