Poor credit car finance can still be foundPoor credit car finance options may often seem limited compared to those available to someone with an unblemished credit history.
Poor credit car finance options may often seem limited compared to those available to someone with an unblemished credit history.
Nevertheless, here are some simple steps you can take which may improve your chances of finding a good deal.
• Shop around on a specialist motoring website
Having access to a range of deals at your fingertips is a real timesaver when you are looking for poor credit car finance. Dealing with specialist brokers online may be advantageous as they can often access a selection of deals that may be suitable for your circumstances.
• Improve your credit score
Your credit score is made up from details of your borrowing history, including not only how much is outstanding on your credit cards, loans and mortgages, but how much you have available to borrow. This is so that any potential lender can see what the worst case scenario would be if you drew down all of the facilities available to you and maxed out your credit cards. If you are serious about improving your credit score, obtain a copy of your credit history from a credit rating agency (which can be done online), and check that all of the entries made against you are correct. If there are any errors, you can apply to have them removed or have your objection to them noted.
• Boost your deposit
Having a larger deposit to put down on a car reduces the risks to the lender in making a loan to you. Accordingly, if you can scrape together a little more money to put down at the start, this could make a difference to a lender’s willingness to lend to you, and the rate they may offer.
• Buy a cheaper car
Unless you have already set your heart on a particular vehicle, it might be worth reducing your budget to ensure that repaying what you borrow will be affordable.
• Consider a longer term
Repaying a loan over a longer period of time is likely to cost you more in the long run. On the positive side, given that the repayments are spread over more months, the repayments themselves are likely to be smaller and may ease the monthly pressure on your family finances. Potential lenders recognise this fact, and may be prepared to lend to you over increased terms. Always take professional advice about any borrowing, and consider how long you want to be paying off the poor credit car finance arrangement.
Posted by Edwin Miles on