5 Steps To Car Leasing With Bad Credit
Published 7 December 2018
Car leasing on bad credit can be very frustrating and stressful.
When you are out to buy a car on credit, it might seem almost impossible since most car dealers will put a heavy rate on your loan without consideration.
Many dealers will also turn your request down due to bad credit. However, it is possible to get a car even with bad-credit without much stress and frustration. Below are the necessary steps to car leasing on bad credit.
Review Your Credit Report
Familiarise With Your Credit Report and Dispute Any Mistakes
Imagine yourself as the loan officer and critically examine your credit reports from each of the 3 largest credit reference agencies:
If you see any mistakes on your report, notify the credit reference agency to get them corrected.
Be determined and focused on paying bills on time if you have not been doing so.
A recent credit history showing you have been paying your bills in full and on time increase your credit score, and your chance of getting a car with bad credit.
Make a Budget Based On What You Can Afford
Apart from your credit score, your potential lender will also look at your ability to repay the loan.
They look at your monthly expenditure and total income in comparison to the amount you are borrowing.
For example if you are seeking to hire a car worth £22,000 with an APR of 14% you will be expected to pay almost £350 on a monthly basis. Your monthly budget should be able to accommodate the additional amount without deviating from your initial budget plan.
Therefore, choose what you can afford comfortably.
The last step is to find the best lender who is willing to offer the best rates.
But remember you will be paying more than those with a good credit rating, as the finance company have to mitigate their risk of loaning to someone with bad credit.
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