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Thursday, 29 of July of 2010

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Adverse Credit Car Finance

If you have an adverse credit rating you are not alone, many people suffer from a poor or non existent credit rating which can make day to day finance decisions very difficult and time consuming. Your bad credit rating may affect your chance to get approved for loans, credit cards or other financing information. With an adverse credit rating, car finance may become a little confusing or even daunting especially if you have been turned down in the past.

However, if you have a bad credit rating there is still hope for car financing. If you are wondering what the next steps to take are for car finance here is how you can make sure your next application is successful.

  1. Find out what your credit score really is. It may not be as bad as you think it is, or it may contain out of date information or credit that has already been paid off or will be soon. Contact companies that have out of date information on your credit score to get it removed from your rating. If you notice any small payments you can sort out now, get those paid off as soon as possible before you make your next application.
  2. Make sure you plan your monthly bills carefully and properly. Even something as small as paying your electric bill on time every month can dramatically improve your credit rating over the course of the year. This will help improve your loan success chance and the amount of loan you will be entitled to.
  3. Find a finance company that specializes in car finance for people with an adverse credit rating. These companies will have a wide selection of different financing options for you to choose from and will help you to find the right one for your current needs.
  4. Sort out your budget before you sort out what car you want. Make sure you work out exactly how much you can afford to spare on the monthly repayments ensuring to take into account extras such as petrol, tax, repairs and insurance. Leave yourself plenty of room for error and emergencies so that you can make sure you don’t miss any loan repayments no matter what happens.
  5. Talk to a financing agent from your chosen company to discuss your loan options. Find out which loan is most suitable for you such as a secured loan, and unsecured loan, PCP financing, no deposit car finance or used car finance among many others. They will be able to take you through the pros and cons of each plan and which ones may be available to you more easily.
  6. If your credit rating is extremely poor, make sure you plan our your current budget and work on ensuring your current bills and payments are all taken care of properly and on time. Some finance options include successful loans based on the past 3 months of your finances as opposed to your credit rating which can be much more beneficial in some situations.

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