Am I eligible for a loan?
As much as most finance companies have the duty to ensure you can repay your car finance loan, you have to meet some basic criteria for you to be eligible for vehicle finance. 1. You have to be a UK resident, 2. You have to be classed as an adult therefore, 18 years old, 3. Are you a UK resident or have been in the country for atleast 1 year minimum, 4. Proof of identity, 5. Do you have a driving licence (not mandatory) and this final one is crucial and very important 6. Are you able to repay the amount borrowed, therefore, proof of income is vital.
A Guide to Bad Credit Car Finance
We understand that getting finance is not easy especially if your credit score is not perfect. We are human and sometime life can hand us a short straw so all these are circumstance car finance companies review to esnure they don’t discriminate based on credit histories. For example, you might have struggled in the past with debt and have missed payments and this might have made you be tagged with a bad credit status. This is where finance companies like Accept Car Finance steps in. With a great panel of lenders in their list they are able to source you the best deal as majority of them specialise with Prime and Sub-Prime car loans. Therefore, if you have been refused car finance elsewhere, we might be able to help but because of the risk factors you might not get the finance with the same rate as a person with a good credit history will be offered.
If you want to improve your credit score visit this article check out this article by ClearScore one of UK’s biggest credit checks companies.
In a nutshell, they propose:
- Pay your bills on time
- Get on the electrol roll
- Use a credit card often but manageble (little repayable amounts)
- Get your name on more bills
- Keep you credit utilisation to a low
Can car finance application harm my credit profile?
Most finance brokers like Rixmotors and finance companies would use soft credit search for the initial checks with your consent. Soft credit checks means that the search to determine if you are eligible for finance won’t show on your credit record. After this has been done, a full search is perfomed once you agree to go ahead with obtaining finance. Therefore, not all finance checks will affect your profile.
However, too many full credit searches in a short duration can indcate you are struggling to get approval and will taint and harm your profile.
What is a Good Car finance Rate?
Shop around for the best possible deals and this will involve scouting the banks and comparison websites to see a good finance rate for your circumstances. Recent research show that if you have a strong credit you generally get an average rate of 3.2%, which is pretty low in line with your top-drawer credit rating. If you are low on credit, then anything from 12.9%, so the jump is very clear for bad credit. If you are somewhere in the middle, an average credit score, then the rate will be around 4.5%. This are not set stone but they are just estimates so be ready as the markets could change and the rates go down or up.
For more information about bad credit finance please visit www.acceptcarfinance.com