Poor credit means fewer finance opportunities.
Right?
Wrong!
A bad credit score may seem like the worst thing in the world, but with the right tools, and the right company, you can get bad credit car finance quickly and easily.
Read on to learn more.
Why do I have bad credit?
A bad credit score could be down to anything from limited credit experience to being heavily reliant on credit forms.
The best way to find out why your score isn’t as high as you want it to be is to check your credit report using a verified credit reference agency (CRA). Here, you can not only see what your current score is, but gain access to a full report of your credit experience and usage.
Many CRAs offer tips and tricks on how to boost your score and display financial responsibility to future lenders.
Can I get car finance with bad credit?
Bad credit car finance is a tricky one.
Some lenders won’t want to provide you with the loan, as you’re seen as a risk – at the end of the day, it’s all about how likely it is that they’ll get their money back promptly.
Because of this, you may be met with higher interest rates, not being accepted at all, or having a limited choice of car and finance deals.
If you do manage to get accepted for bad credit car finance, it’s a great way to improve your score. By making full, and on-time payments, you can show you can budget your income responsibly.
Car finance with no credit history
Similarly, getting car finance with no credit history can be difficult.
However, there are specialist car finance companies that organise payment plans regardless of your credit score and experience.
How to get bad credit car finance
So, you have a poor credit score but want to get behind the wheel of a car.
Where do you start?
Here are some ways you can get bad credit car finance:
Larger deposit
It may be a requirement to put down a larger deposit if you have an undesirable credit score. However, offering a larger deposit gives the lender more security, as you’re seen as a low-risk customer.
Consider a guarantor
A guarantor is someone who will take on the payments if for any reason you become unable to fund the finance agreement.
Again, this adds a level of security, as it shows the full cost will be covered no matter what.
Not all finance companies offer this, so do your research before you rely on a guarantor.
Find bad credit car finance specialists
A bad credit car finance specialist – like Concept Car Credit – can help you achieve all the benefits that come with owning a car, without worrying about your credit score.
They work with you to find a finance agreement that suits your budget and lifestyle.
How to improve your credit score
Don’t be too hard on yourself if you have a less-than-perfect credit score. There are many ways you can give it a boost to give you more freedom when choosing and applying for finance types – including loans, mortgages, and credit cards.
Register to vote
It sounds simple, but registering to vote confirms your identity and your current address, improving your score as a result.
Limit hard credit searches
The more you apply for credit types, the more hard credit searches are done on your account.
Hard credit checks can stay on your report for up to two years, having a huge impact on your score. This is because it shows you’re heavily reliant on credit forms, making it seem like you struggle to manage your income and fund your lifestyle.
To reduce this, only apply for credit you know you can be approved for, to reduce the impact it has on your credit report.
Reduce debt
Get organised, set up standing orders, and pay off any outstanding debt as and when you can.
This shows you’re dedicated to improving your score and are learning more about managing your money.
