Bad Credit Car Finance

Bad Credit Car Finance

There are a number of opportunities for those with bad credit to acquire car finance, and certain companies will provide advice and guidance to those who wish to buy a vehicle but have a poor credit history.

A Bad credit history can be incurred by a range of circumstances and difficulties, and customers in this situation may be in a position where they are on a debt management plan, cannot afford a deposit or have loan defaults because of missed payments.

In some cases a bad credit history can be acquired simply by having had no credit in the last 6 years, which means that you do not have a track record that can be assessed by those providing car finance, or alternatively you may be self-employed. As you can see, the reasons for poor credit history can be numerous and varied so the car finance provider will take all this into account when you make an application.

Car Finance

Bad credit car finance is fundamentally the same as other types of car finance, and your application will be considered taking into account your credit score and what is a reasonable amount to pay back each month. The company will assess your credit report and will also factor in the payments you would have to make for a new or used car in conjunction with your other outgoings – they will also look at your previous commitment and record of paying back debts.

Credit File

Clients for car finance often do not know what information is held in their credit file, which is a report listing your current and previous addresses, electoral roll data and financial information such as any mortgages, loans, credit cards and overdrafts you have had. The report will also show late or missed payments and public record information such as any CCJs (County Court Judgements) as well as any insolvencies and bankruptcies. The report also details anyone you have had joint accounts with for mortgages, loans or other types of accounts.

It is easy to secure a copy of your credit file and understand your credit score and a number of websites offer this for free such as Check My File and Experian. Money Saving Expert, Martin Lewis, also recommends that people keep up-to-date with their credit score and check it annually just so that they understand it and their website offers information on how to deal with it if it is too low.

Buying a Car

Therefore, if you are in any of the positions outlined above or similar ones that mean you have a poor credit history, this need not deter you from seeking information from reputable companies such as Compass Vehicle Services The company are authorized by the FCA and understand the difficulties inherent in today’s economic climate that can lead potential customers into problematic situations. Their website takes you through the application process for applying for a vehicle, and staff offer professional, objective and friendly customer service at every step of the way.

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