Getting Car Credit with Poor Credit History: A Guide

If you have experienced multiple credit issues throughout the years, you might believe you stand no chance of receiving credit for a new car. While your options will be limited in comparison to those with a better credit history, it is still possible to secure a great car finance deal.

If you can’t afford to buy a car outright and want to secure a deal that helps you to drive a reliable vehicle throughout the year, find out how to get car credit with a poor credit history.

Improve Your Credit Rating

Regardless of whether you want car finance or not, you must work on improving your credit rating as soon as possible. Doing so will prove to lenders that you are not only responsible with your finances, but that they can trust you will make the necessary repayments each week or month. Not only could it help you to secure a car finance deal, but it could also result in you being accepted for a mortgage or business loan in the future.

Register on the Electoral Roll

Did you know that your presence on the electoral roll (or lack of it!) can determine whether you receive a finance deal or not? Most lenders will perform credit checks before they approve an application, so they’ll check your name against the address. If you have a poor credit history and your name isn’t on the electoral roll, a lender will more than likely reject an application.

Turn to a Finance Company that Accepts Bad Credit

Bad credit doesn’t need to stop you from driving a dependable vehicle! One option you have is to turn to a car finance company that accepts people who have bad credit. You can then take your pick from thousands of cars, so family road trips, shopping adventures and driving to work could soon become a reality. Check out this car finance company that can help.

Issue a Notice of Disassociation

Have you been refused a car finance deal in the past? It could be because you have a joint credit account with someone else, such as a past partner, who might now have bad credit. Unfortunately, the black mark against their name could now be extended to you. If so, you must sever all financial ties to the individual as soon as possible, so you should issue a notice of disassociation, and the person could eventually be removed from your file.

Keep Up with Your Debt Repayments

Growing debt will not help an application when attempting to secure car credit. That’s why you must keep up with your repayments to signal to a lender that you can borrow responsibly. This will also help to improve your credit score in the long-run. You also should monitor your spending to ensure you never allow your debts to spiral out of control again.

Increase Your Initial Deposit

Lenders will not want to provide a finance deal to a person who is seemingly unable to make regular repayments. Eliminate their fears by increasing your initial deposit on a vehicle. It will provide a lender with some peace of mind that you’ll be able to meet the monthly repayments on schedule, and it could also help you to secure a better interest rate.


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