Contrary to popular belief, just because you have bad credit doesn’t mean that you cannot get a loan for your car at all. The state of your credit history is usually a matter of opinion, and if your score is just touching the border, some lenders might still be willing to help you finance it.
There are ways to ensure you can get car financing such as:
Get to know your credit score and report
The first thing you need to do is be absolutely familiar with your credit report. This measures your creditworthiness, but that does not mean it tells your whole story.
There are a number of factors that go into calculating credit report, such as your payment history, how long your credit history is, the type of credit you have, and whether you have new credit accounts etc. If there are some missing payments, then you need to note down why they were missed in the first place. This includes searching for errors and reporting any you find.
If you know why your credit score is low in the first place, you can easily take steps to improve it. One of the measures you can take is pay off all of your credit cards and be prepared with documents to explain to lenders why you missed payments. Job loss or medical expenditures can be used as leverage, if they are true of course. The loan officer will ask for documentation as proof of either.
Take care of pending payments and shop around
Before you decide to shop for a loan, you should enhance your credit score by paying all of the bills you have pending on time and least all for the last 6 months. Even though this might not have a significant impact on your credit score, it will show lenders that you are serious about mending your report. This will go a long way in helping you get the loan you need.
Even if one lender rejects your loan request, not all of them will. Some might see it in a positive light. So make sure that you shop around before finalising a lender. If you are a young driver with a negligible credit history, this can be easier to do, but if you have ever been bankrupt or laid off for some time, then getting car loan financing can be challenging.
Driveaway Autos keeps to its namesake so we can help you get UK car finance for bad credit. We have many years’ of experience financing cars for all manner of drivers and will help you through the process. Just because you have suffered in life does not mean you were irresponsible.
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