how to: get car finance with bad credit
TRANSCRIPT
Getting a loan when you have a poor credit history can be difficult. Mainstream lenders, such as banks, have
tightened their lending criteria since the recession started to bite, leaving people with bad credit
struggling to get access to the credit they need.
However, bad credit car finance is still available. A car loan is secured against the
vehicle, which means that the lender can repossess the car if you do not make the
repayments on time. Secured loans represent a lower risk to the lender than unsecured loans, which means that bad credit car finance can
be easier to obtain than other lines of credit.
There are many reasons why you might have bad credit. Perhaps you have a county court
judgement (CCJ) against you, or you failed to keep up with repayments on a previous loan. Some people have poor credit ratings simply because they have never had a loan before, so
lenders do not have enough information to assess whether they pose a risk of not repaying
the money.
The main disadvantage of bad credit car finance is that interest rates are usually much higher for people who have poor credit
ratings, which means that you will end up repaying a larger amount in total. On the other hand, keeping up with the
repayments on your car loan can help to repair a damaged credit history, as it proves to lenders that you can be relied
upon to repay the money you borrow.
Before you accept bad credit car finance, make sure you have enough income to meet the repayments. If you can afford to
repay the loan over time, bad credit car finance can allow you to get your hands on the set of wheels you need to get around.
Bad Credit Car Finance Specialists
www.glensidefinance.co.uk
Bad Credit Car Finance Specialists
www.glensidefinance.co.uk