For those who are looking for a new car or van and have bad credit, it can be tricky to find a way around it. If you are in need of a vehicle for work, for example, it’s crucial for builders to own vans to hold all their equipment and drive to different locations every day. Others need a car or larger vehicle if they have lots of children and this can be difficult to get hold of with a low credit rating. Here are some of our top tips to help you get a car or van if you have a bad credit rating…
Find car loan companies that have lenient lending requirements
For those who have a bad credit rating and need to improve their financial health, the only way to get a car or van is by finding car loan companies that don’t require a good credit rating. There are some companies that are more trusting with their loans and they willingly offer bad credit car loans for those in need. If you have been declined elsewhere, don’t let this put you off applying to other loan companies. Some don’t even need a guarantor!
The best type of car finance to go for
When you are looking for car finance, there are many different car loan companies that offer different types of loans. It’s best to go for used cars on finance as they’re likely to be more affordable, but make sure you give them a test drive before investing and thoroughly check the condition. Most car loan companies only finance used cars in great condition.
Advantages of using finance to get a van or car
If you don’t have money saved up to buy a vehicle outright, it can be beneficial to use car finance, even if you do have a good credit rating. Finding the companies that have more relaxed requirements will be your best bet when hunting for finance that doesn’t need proof of a good credit rating. Owning a used car and paying it back in instalments is a convenient option for many people and the fact you will own the car outright when you have paid everything off is a bonus! You won’t need to give the car back, and the set monthly instalments can help you judge when the car will be all yours, as they will be the same amount every month.
What will I need to take out car finance?
There are some basic requirements you will need to take out car insurance, apart from your driving licence, of course. Make sure you have your ID, proof of address and the past 3 months of your bank statements handy when you visit the car centre. You don’t want anything to stop you driving off with your new vehicle!
Now that you know some of the best ways to get around your bad credit rating and still get a van or car, what are you waiting for? There is still hope for you if you’re willing to make monthly payments to pay off your car finance gradually. Make sure you only take out car finance if you can afford to pay back the monthly instalments or you could end up getting into debt, and damaging your credit rating even more.
