What is Bad Credit Car Finance? Bad credit car finance is like any other type of car finance. Lenders specialise in offering finance to applicants with bad credit and change the rate they offer depending on your overall credit profile and can base their decisions on your credit file but also take your affordability into account giving you a greater chance of obtaining an approval. As we are a specialist bad credit car finance dealer, we work with every bad credit car finance company in the UK
How can you offer finance to customers with bad credit? Anyone is entitled to apply for bad credit car finance, but not everyone will be approved. The lenders we use look at your credit worthiness and your affordability before making an assessment on how much they can offer you. Due to the risk involved in offering car finance to applicants who have defaulted on payments before, the interest will be higher than good credit car finance to allow for the cars they have to repossess.
Does applying for bad credit car finance affect my credit file? Most of the lenders we use, use a ‘soft search’ facility which doesn’t leave a footprint on your credit file. Due to this, the impact on your credit score is very minimal or not at all.
If I get approved for Bad Credit Car Finance, do I have to go ahead with it? No. If you get an approval, we will let you know the payments, APR and documents you would need to buy a car – but until you complete an esign, you will not be tied to any credit agreement. Once you sign an agreement, this is a legally binding contract and purchases the car from us.
What credit score do you need to get approved for Bad Credit Car Finance? The bad credit car finance lenders we use do not rate you based on your credit score, they have their own credit based rules that determine whether you will be approved or if they need to speak to you. The main things that would result in a decline are current arrears, CCJs or defaults in the last year or if you are currently bankrupt.
What can I do to improve my chances of being approved? Things that will help you get approved are – paying a large deposit (£500+), registering on the electoral roll, paying off any old debt, catching up any arrears, maintaining your bank account and not being over an arranged overdraft.
Why should I go to a bad credit car finance dealer? Bad credit car finance dealers will specialise in car finance and use every bad credit car finance company available to ensure you get the best car finance deal based on your overall profile and credit file to offer you the lowest repayments available to you. Bad credit car finance dealers also care about returning customers and recommendations so will ensure the aftersales service they offer you is the best it can possibly be.
Every vehicle we supply receives a pre delivery inspection, comprehensive road test and full MOT leaving us sure that the cars we provide go out in the best possible condition. If you do experience any mechanical or electrical problems inside the first 6 months of ownership, we supply a comprehensive in house warranty to keep your car happy and healthy.
We have helped some of our customers on the road towards improving their credit score. Every piece of credit on your file contributes to your overall credit rating and paying a car loan will improve your score and in time, all your bad credit will expire leaving your credit file clear to obtain mainstream finance.
