Bad Credit Car Finance Infographic

Bad Credit Car Finance Infographic

Thinking about buying a car is an big decision. If you are considering buying a car on finance and if you have had bad credit in the past you must also take into account the costs of running the vehicle and any other outgoing costs or existing credit agreements.

We have created this bad credit car finance infographic as a guide to provide information on how you can help increase your chances of getting approved for car finance if you have bad credit or a poor credit history in the UK.

bad-credit-car-finance-infographic

How does the bad credit car finance process work?

Hire Purchase finance is one option for those who are having a hard time securing other types of credit for example:

If you can’t get a personal loan, have bad credit or don’t want to pay cash.
You make a repayment every month to hire the vehicle until the full amount of your finance agreement is paid off, the car is yours after the final payment.

How can I get car finance if I have bad credit?

You may need to prove 3 years’ of employment and address history, this is so a credit check can be performed to search your credit history.

An important part of the car finance application is choice of vehicle.

When thinking about car finance and choice of vehicle consider whether you can afford the monthly repayments and the vehicles running and maintenance costs. For example: MOT and servicing, insurance and fuel.

How can I start to rebuild my bad credit?

If you have any other credit agreements that you have fallen behind with making payments and want to improve your chances of getting accepted for car finance you should get them up to date as soon as you can.

What else do I need to know about bad credit car finance?

Check any existing debts have your correct details such as name and address, you can contact your creditors to make sure you are registered with the right details or update them if you need to.
If you have a long history with the same bank, living at one address or working in the same job, this is something lenders of finance like to see.

It can be hard to obtain credit if you are not on the electoral register so make sure you are listed.

Are there any risks in buying a car with bad credit with hire-purchase?

There are always some risks with any credit agreements or loans, lenders of car finance in the UK are regulated by the Financial Conduct Authority (FCA) which makes sure lenders practices are both ethical and responsible.

As long as you keep up with your agreed monthly repayments the finance is secured on the car, the lender can repossess the vehicle if you fail to keep up these payments. This can also give you a bad credit profile and damage your credit report too.

A lender should also take into account your monthly ingoing and outgoing costs to make sure the finance repayments are affordable.

Where can I go for advice if I have bad credit?

If you currently have credit issues and are not sure what to do you can visit the site below for more information and confidential advice about debt management, debt problems and bad credit.

www.moneyadviceservice.org.uk
www.stepchange.org
www.nationaldebtline.org
www.citizensadvice.org.uk
www.debtadvicefoundation.org

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