In this post I am sharing my experience with a car finance provider called Carmoola. I used them to refinance an existing car loan and wanted to see if I could reduce the interest rate I was paying.
I first came across Carmoola through Experian and decided to visit their website to see what they could offer.
Initial Soft Search
The first step was to complete a soft search to see whether they could approve my refinance request and whether the interest rate would be cheaper than my current loan with Moneyway.
After entering a few personal details, Carmoola confirmed that I could be approved in principle. The interest rate they offered was roughly 3% cheaper than what I was currently paying.
Because this was a soft search, it did not leave a footprint on my credit report. Soft searches simply allow a lender to assess whether you are likely to qualify. They are not a guarantee of approval, but they usually give a good indication.
Applying to Carmoola
The actual application process was straightforward and mostly completed through the Carmoola mobile app.
The steps included:
- Downloading the Carmoola app (available on Android and Apple devices)
- Confirming my personal details, including address and employment status
- Linking my bank account so they could review my income and spending as part of their affordability checks
- Uploading a photo of my driving licence and completing a short identity verification using a selfie and a security code
Once that information was submitted, the application moved on to the final stages.
I then needed to confirm the settlement amount for my existing finance with Moneyway and choose the new loan term. Carmoola allows terms of up to 60 months (five years).
After submitting everything, the application went through final checks and was approved about 20 minutes later.
How the Payment Works
Carmoola normally provides a virtual payment card that can be used to purchase a car from a dealer. This means you can choose a vehicle from most reputable dealers and pay using the card through the app.
Because I was refinancing an existing loan rather than buying a new car, Carmoola also offers the option of making a direct bank transfer to the existing finance company.
All I needed to do was enter the settlement details from the letter provided by Moneyway.
Around 20 minutes after submitting the details, Carmoola had completed the transfer and settled the existing finance.
Overall, the process was very quick and efficient. Once approved, the offer remains valid for 30 days, giving you time to confirm settlement figures or choose a vehicle if you are purchasing a car.
Will Carmoola Accept Bad Credit?
My credit history is not perfect, which suggests Carmoola may have some flexibility when assessing applications.
However, if you have multiple defaults or County Court Judgments, you may find it more difficult to be approved. In those situations, a specialist broker may be able to help find a suitable lender.
Refinancing My Existing Car Loan
The main reason I used Carmoola was to refinance my existing car finance to see if I could secure a better rate.
In my case, the rate offered by Carmoola was about 3% cheaper than my existing finance agreement, which made refinancing worthwhile.
The key step is obtaining a settlement figure from your current lender. This tells you exactly how much is needed to clear the existing finance so the new lender can replace it.
Extra Features in the App
One thing I liked about Carmoola is that the app includes a few useful features.
You can make extra payments directly through the app, which can reduce your monthly payments. It does not shorten the loan term, but it does help lower the balance faster.
The app also includes some small touches such as:
- The ability to name your car
- Information about when the car was registered (which Carmoola refers to as when it was “born”)
- Basic vehicle information such as carbon emissions
These are minor features, but they make the app feel more modern and user friendly.
Another helpful feature is the loan progress indicator, which shows the percentage of the loan that has been repaid. When the loan first starts it obviously sits at 0%, but over time seeing that number increase is a good reminder that progress is being made.
As someone who has previously struggled with debt, I actually find that kind of visual progress motivating.
Final Thoughts
Overall, my experience with Carmoola was very positive.
The application process was quick, the app was easy to use, and the refinancing was completed in under an hour once everything was submitted.
Looking at Trustpilot, Carmoola does not yet have a huge number of reviews, but that is likely because they are still relatively new to the market.
Based on my own experience, the process was smooth and efficient, and I would certainly consider using them again.
