Because of your lack of credit history, the car finance companies simply do not know yet whether you are going to pay for your credit. This makes it more difficult for you to get bank loans and credit cards, however, because car finance is on an asset, there is a higher chance of acceptance.
Sometimes, yes. This is often the easiest way for you to get approved. If you can convince a parent to guarantee that you will make the repayments. The risk to them is that if you don’t make your repayments, their credit rating is at risk, same as yours.
That said, the lenders we work with can often get you an approval without the need for a guarantor. Sometimes they may ask to see recent bank statements or ask you for a higher deposit in order to offer car finance for young drivers.
We may be able to get an approval for car finance for young drivers under 21 if you have good credit or no credit history.We wouldn’t be able to assist if you have very bad credit until you turn 21.
The finance company won’t ask you to have a black box fitted. If you choose to do this yourself, you can considerably reduce your insurance premiums.
Any time with car finance. Bear in mind that you need to be in a position to pay off the finance though if you sell your car. This is normally tricky in the first 2 years of your agreement.
The only way this can be done is if you live with your partner and they have a full driving licence. There are no finance companies that will offer finance to drivers on a provisional licence until you pass your driving test.
There are several credit reference agencies in the UK that use different point scoring systems from each other, this makes the score irrelevant to bad credit car finance companies. Although most of the companies we use have credit scoring in place, they use their own set of rules to help them make decisions rather than the score offered to them from credit reference agencies. This means that we have seen applicants with very low credit scores get approved for car finance but we have also seen cases declined with higher scores. The only way to know for sure is to make an application.
This depends who has declined you, car finance brokers such as Car Finance 247, Midland Credit and Zuto are limited to finance companies that will deal with brokers. We have additional lenders we can use that only deal with dealers directly which gives us additional options to gain approvals for you. Many dealers have policies in place where they will only offer finance to customers with good credit too. The only way to know if we will be able to get finance approved for you is to apply to us directly.
If you have tried us and been declined then you will need to take action to improve your credit file before we would be able to gain an approval for you. See our guide to improving your credit
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