Car Finance with Bad Credit – A short guide
Although, car finance is becoming more popular as time progresses, there are a staggering number of people who still have no idea how it works. This is understandable, as unless you’ve gone through the process before, or you’ve been following the car finance sector, it can be rather difficult to wrap your head around.
The one question that seems to be asked the most is “Can I still buy a car on finance if my credit score is poor.” The simple answer is yes; however, there are a lot of factors that come into play when it comes to car finance for people with poor credit.
To help you better understand the process, and make things easier for you, we’ve decided to put together a short guide filled with facts, tips and useful information.
Let’s start with simply answering the question at hand. Yes, it’s possible to purchase a vehicle on finance with poor credit, but it’s important to understand that your choices are limited. It’s most likely going to be a little more difficult for you to get approved, compared to someone with an excellent credit score.
Start with working out a budget. Look at the vehicles you’re interested in, and come up with a reasonable amount you think you’ll be able to pay on a regular basis. You’re likely not going to get approved for an extravagant luxury vehicle, unless you have thousands already saved up, so remember to stick to cars you know you’ll be able to afford.
The most popular option for people with poor credit is hire purchase. Although, slightly more restricting than personal contract purchase, it offers protection for both you and the finance provider, meaning your application is more likely to be taken seriously.
Don’t go applying for finance you know you’re not going to get – it’s simply pointless. Few people know this, but getting rejected whilst applying for any form of finance, has a very negative effect on your overall credit score. A rejection stays a part of your credit history, which all potential finance providers can see at request. Don’t make the mistake of hoping to get approved, be realistic and your chances will increase considerably.
When approaching potential car finance providers, be honest about your situation. The truth will always come out, so lying on your application or avoiding simple questions, will only result in failure and disappointment. Read more: Trusted Car Credit
If you’ve been looking to get a new vehicle for quite some time – don’t wait any longer. Take control of the situation and get your hands and the vehicle you’ve always wanted.
Let us know if you found this guide useful, and don’t forget to check out the rest of our blog for more informative articles about cars and car maintenance.