Will I have a higher interest rate car loan with bad credit?

If you’re looking at a bad credit car loan, you might be wondering if this type of loan comes with a higher interest rate compared to a standard loan. The interest rate of your bad credit car loan will depend on factors such as your credit score and history, your lender, your loan type, and whether or not you provide security for your loan. Of course, many other factors can affect your interest rate as well.

Read on below to find out more about interest rates and car loans.

What is a bad credit car loan?

A bad credit car loan is a specialist loan that is used to help those with a bad credit score be financed for a car or a vehicle. Those who do have bad credit can sometimes find it difficult to meet the application criteria for a standard loan due to their credit history.

Bad credit loans are designed for people who may have found repayments difficult to keep up with, or who have not had the financial experience to have a high credit score. Generally, anyone who has any type of bad credit can apply for a bad credit loan.

Bad credit loans are different from traditional loans in that they are targeted to help those who have experienced any kind of bad credit. Those who have experienced a bad credit score or history may find a bad credit loan helpful.

The biggest advantage of a bad credit car loan is that it can allow borrowers with bad credit to access finance. Getting a bad credit car loan could even help borrowers improve their credit rating by making their repayments on time.

Will I have a higher interest rate car loan with bad credit?

Generally, your interest rate for a bad credit car loan will depend on your lender, and what they can offer you. Your lender may take into account your credit score, your credit history, and your current employment when deciding on an interest rate for your loan.

The type of loan that you apply for, be it secured or unsecured, may also affect your interest rate. Rates can be significantly different depending on what loan type you choose. The duration of your loan may also impact your interest rate. You may find that shorter-term loans have lower interest rates and lower overall costs, but higher monthly payments. However, this depends on your lender, your loan type, if you provide security for your loan, and your credit history.

Where does Tiger Finance come in?

We have helped countless Australians with both good and bad credit ratings to be funded for their dream car. The lending criteria from other lenders can be far too strict when you have bad credit.

With Tiger Finance, we can help to get you a loan in four easy steps. You will have a free consultation with one of our specialists, and we will tailor-make you a loan. We will negotiate with lenders on your behalf before you are approved. You won’t find an easier way to get approved for a bad credit car loan.

How we can help

Tiger Finance is here to help you to get your dream car regardless of your credit score. We can make the process simple and pain-free. With our quick application process, we can have you approved on the same day that you apply if you’re able to meet our criteria. Our loan specialists will make the entire process stress-free.

If you’re ready to drive away in your new car, call us today for your free initial consultation with one of our loan specialists.