How to get car finance with a bad credit score
Even though having bad credit can limit your options, there is still a chance you can get hold of some sort of solution. Your credit history is very important in determining how much finance you can get, so first, try to avoid making your credit worse. Credit is dependent on times of payments, amounts borrowed/payed back and loans. You can increase your credit rating by showing that you pay back on time and are reliable to loan to. Some car dealerships will offer lower finance deals or maybe none to people with low credit.
To start off, get hold of your credit report so you can see exactly where things are going wrong. Check everything is right and see what is making your credit low, for example any missed payments. It’ll help you to pay off any out-standing debts you may have, when you’re trying to borrow money it doesn’t help that you have already borrowed some and not payed it back. Keeping up with your repayments can help show the lenders that you are actively trying, and make your chances of finance higher.
Another way you can help yourself to get a finance deal is by getting on the electoral roll. This makes it easier for lenders and reduces fraud risks at the same time. Having a shared account with someone can be good if that person has good credit, however if they have bad credit then it brings you down too. You need to severe ties with others who have a dodgy credit history, this in turn will bring yours up.
Before you go into buying a car, look at the company to see if they offer finance to customers with low credit. Some used car dealerships with expertise in finance, such as Trade Cars and Commercials, will always try and provide car finance to every customer. Always remember that whatever loan you get you will eventually have to pay it back, so don’t go crazy and buy something you aren’t going to be able to afford.