Getting car finance with a very poor credit rating can be frustrating and difficult, to say the least. However, this does not take away the fact that people with bad credit can get car financing if the process is well-planned and implemented. It is usually advised that you prepare and educate yourself about your credit score and history for now and the future. You also want to know the different available types of loans.
Working with past lenders and creditors in a bid to clean up your credit score is advised, as this helps to get the most beneficial financing. Below are some effective tips for getting car finance with poor credit.
Improve your credit
The first step to getting car finance is to look for ways of improving your credit score, by carefully studying the score and look implement tips to improve it. It is worth noting that the credit score is the major deciding factor for getting the loan. It also determines how much of a down payment will be needed as well as the interest rate on the loan. Therefore, you want to ensure that you improve your score. Fortunately, you might only have to put some simple things in place to improve your score and increase your chances of getting an affordable loan.
Offer the Highest Down Payment Possible
There are several advertisements for car sales requiring little or no down payment, and while they might look like a good deal, they are in fact not the best of deals. Such deals only work for the lender and the car dealer as they raise the amount of money to be paid over the life of the loan as well as the interest on the loan. Consequently, it is advised that you pay the highest possible amount as a down payment to shave off a significant portion of the interest.
Use a different dealer and lender
It is advised that you use a different lender and dealer when buying the car as buying and lending from the same institution limits you financing options. While getting using the same institution might seem to be a convenient option, it usually does not give you the best deal. It might get even worse as it limits the types of cars you can get.
Get a Second Opinion
It is always best to get a second decision in everything in life, especially if it is a big decision. Getting a professional advice in the form of a second opinion, particularly to check the car will help you to save hundreds of pounds in potential repairs.
As mentioned earlier, buying a car with poor credit is not impossible and can be done if the right steps are taken. Adequate preparation and some bit of research and looking around for car dealers and lending institutions that are willing to work with you will help you to live the dream of owning a car even with your bad credit.