Can I Get Car Finance with Bad Credit?
What is Bad Credit?
Your credit rating will increase or decrease depending on your history of repaying loans. Bad credit could be the result of numerous factors: missed payments, arrears, defaults, county court judgements (CCJs) and bankruptcy. Having no history of loans on file can also count against you, as this shows a lack of evidence to support your application.
Why Does Bad Credit Affect Car Finance Eligibility?
Your credit rating is essentially an indication of how reliable you are when it comes to paying back money you have borrowed. Finance lenders will look at your credit report to see how consistently you have repaid loans in the past, so that they can assess how likely it is that you will make your car finance repayments.
If you have bad credit, this suggests that you are less likely to repay the loan consistently, and whatever your current situation, some finance providers may be unwilling to approve your application because of this. Luckily, there are a number of lenders who specialise in bad credit car finance, and will still consider your application.
How to Get Car Finance with Bad Credit
If you have bad credit, don’t resign yourself to the belief that you will not be able to get car finance. You still have options! The best thing you can do is to try and approve your credit rating. This can take a while, but it means that it will be easier for you to apply for loans in the future.
However, if you want to get behind the wheel of a new car, and you don’t want to wait around, trying to build up your credit score, there are a couple of other things you could try. Consider choosing a different type of finance. In some cases, borrowers may not be eligible for PCP finance, but they may be accepted for an HP agreement.
Finally, choose a provider who specialises in poor credit. Wavertree Car Centre has been able to help arrange car finance for many people with bad credit over the years, and we will not turn you away without careful consideration of your application.