It’s no secret that having bad credit can make it harder to get approved for a loan – but what many people don’t realise is that it’s still possible to get an auto loan with bad credit in NZ.
While your options may be more limited than if you had good credit, there are still plenty of lenders who are willing to work with you to get you the financing you need.
Here’s what you need to know about getting an auto loan with bad credit in NZ.
The first thing you need to do is check your credit score. This is a number that lenders use to determine your creditworthiness, and it’s important to know where you stand before you start applying for loans.
If your credit score is below 600, then you’re considered to have bad credit. However, this doesn’t mean that you won’t be able to get a loan – it just means that you may have to pay a higher interest rate.
Once you know your credit score, you can start looking for lenders who are willing to work with you. There are plenty of specialist bad credit lenders in NZ, so you should have no problem finding one that’s a good fit for you.
When you’re comparing lenders, make sure to look at the interest rates on offer. As we mentioned, bad credit loans tend to come with higher interest rates, so you’ll want to find the lender who can offer you the best rate.
You should also compare the fees and charges that each lender charges. Some lenders may charge higher fees for bad credit loans, so it’s important to factor this into your decision.
Once you’ve found a few lenders who you’re happy with, it’s time to start the application process. The good news is that most bad credit lenders in NZ offer online applications, so you can do this from the comfort of your own home.
When you’re completing your application, make sure that you provide accurate information. Lenders will use the information you provide to assess your loan application, so it’s important to be honest from the start.
Once you’ve submitted your application, the lender will carry out a credit check. This is to make sure that the information you provided is accurate, and to see if there’s anything else they need to know about your credit history.
If you’re approved for the loan, the next step is to sign the contract. This is a legally binding document, so make sure that you read it carefully before you sign.
Once you’ve signed the contract, the lender will transfer the funds to your account. You can then use the money to buy your new car!
Getting an auto loan with bad credit in NZ is easier than you might think. There are plenty of lenders who are willing to work with you, and the process is relatively straightforward.
If you’re thinking about buying a new car, don’t let bad credit hold you back – get in touch with a bad credit lender today and see how they can help you.