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Bad credit car finance could be suitable if you have a poor credit rating

Bad credit car finance is one way that those with a poor credit rating can take out a loan to buy a new or used vehicle. As your credit file is one of the first things that is taken into account by anyone offering you borrowing of any kind if you have bad marks on your credit file due to missed/late repayments then you could find obtaining any type of credit impossible. However there are specialist lenders who might take a risk on you even with a bad credit file and could offer you a bad credit

Bad credit car finance is one way that those with a poor credit rating can take out a loan to buy a new or used vehicle. As your credit file is one of the first things that is taken into account by anyone offering you borrowing of any kind if you have bad marks on your credit file due to missed/late repayments then you could find obtaining any type of credit impossible. However there are specialist lenders who might take a risk on you even with a bad credit file and could offer you a bad credit loan.

 


Generally if you are looking for bad credit car finance then you could expect to have to pay over the odds when it came to the rate of interest. This means that you generally cannot expect to be offered 0% deals as you might find offered to those with a perfect credit score. However a bad credit loan will at least provide those whose credit files are less than perfect the chance to finance a car.


When looking for this type of loan you could shop around for the best deal with the best rate of interest. One of the best ways could be to go with a specialist website. You could not only get access to the best deals but you may also save a great deal of time compared to looking around for quotes yourself.


Bad credit car finance will generally be offered as a secured loan and as such there are both good and bad points that have to be weighed up against the other. Usually a secured loan will come with lower interest rates than an unsecured loan. However with a bad credit rating this might not be the case. The secured loan will need to be secured on something of value which could be the vehicle or your home. This means that if you cannot repay the loan and fall behind on the repayments of the loan then you may be at risk of losing whatever was secured against the borrowing. You could take the loan over a number of years which will allow you to stretch out the monthly repayments and so keep them at an affordable level, depending on your lender. However you will have to take into account that the longer the term you took the loan over then generally the more interest you will pay and the more in total the vehicle will cost in the long run.

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Back to May 2009

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