Is a car finance option available for people with bad credit history?


Posted April 25, 2022 by Wheeliegood

A bad credit score suggests that you have a low credit score in the eyes of credit reference agencies.
 
Good news! The new used car finance companies have come to rescue people with bad credit scores. These companies go the extra mile to find the right car finance deal for you. The car finance specialist understands that it is not always possible for you to have a quality credit score, but that does not mean you cannot purchase a car. 

What is bad credit?

A bad credit score suggests that you have a low credit score in the eyes of credit reference agencies. Here are the reasons for the same.

1. Missed payments

Whenever you miss a payment, it is recorded in your financial records. The lenders will consider this a red flag and narrow down the loan financing options.

2. Failure to pay and CCJ

A default is seen on the credit file whenever you cannot make the payment. It is recorded after multiple defaults or if you have missed several monthly instalments.

3. Denied payments

Taking personal loans and car finance is a matter of trust; if the agents are declining the personal loans or credit cards, it is a sign that you are a defaulter and the credit score is not high.

Car finance options for people with bad credit history

But this cannot stop you from obtaining car finance. There are two methods to get second-hand car finance- hire purchase and personal contract purchase. In the former, you have to make monthly payments towards the car value and own the car at the end of the agreement. The car is kept as collateral. PCP also works similarly, except in this method, you have to pay for the depreciation of the vehicle instead of vehicle cost, and at the end of the agreement, you can either own a car or walk away.

How to avail of used car finance loans for self-employed?

· You can take the assistance of a car loan calculator to find out the loan you are eligible for.
· Apply using the application form
· The second hand car finance companies will do initial soft checks rather than hard checks to check your eligibility without impacting your credit score.
· After completing the form, if you are eligible, the car finance companies will get in touch with you to discuss the terms and conditions and help you find a dedicated lender.
· You can select a used car from the dealership

Conclusion

A bad credit score cannot push you from owning a car. There are many car finance providers like Wheelie who are willing to forego your past mistakes and help you recover, as well as they will help you improve your credit history. They will assess your affordability, determine your eligibility, and help you to find a lender who can offer you desired loan.

Adam Barton is the author of this article. To know more about Second Hand Car Finance in UK. Please visit our website: wheeliegoodfinance.co.uk
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Issued By Wheelie Good Finance
Phone 01202 836683
Business Address 23 Hinton Road, Bournemouth, BH2 1EF
https://www.wheeliegoodfinance.co.uk/
Country United Kingdom
Categories Business , Finance , Loans
Tags second hand car finance , used car finance
Last Updated April 25, 2022