One of things I have recently had to purchase is a car. I have bad credit. My options became somewhat limited.
Is there such a thing as ‘car credit for people with bad credit’? Well the answer depends really on how bad your credit is. Despite this there are a number of lenders out there who specialise in the so call subprime borrower – for example someone like myself.
Today I will talk about how I got Car Finance despite my bad credit. I will also try and make you see why it is not always a good idea to use a bad credit loan provider too.
Where to get Car Finance with Bad Credit?
As I mentioned before there are a number of organisations who provide car finance when you have bad credit. Here are some examples of finance companies operating in the subprime market: –
- Advantage Finance
- Vehicle Trading Group
There are more and those are just examples. In any case when you have bad credit you are better off speaking to a Car Finance Broker such as: –
- Car Finance 247
Definitely do your homework before committing to a particular broker though. I would recommend looking at review sites to see what customers thing of them overall.
Even car dealerships can often broker deals between yourself and bad credit lenders so it may also be worth asking there too.
In my own case I went to Car Finance 247 and eventually got a loan approved through Advantage Finance. There wasn’t a deposit to pay either which was good. PS I have written a Car Finance 247 Review if you would like to read it.
One last thing! Before you apply I would recommend checking out your credit report. Have a look at my Noddle Review to find out more.
My Thoughts on Car Finance with Bad Credit
So here is the bad part. Whilst you may be excited to get a new car, the cost of Car Finance when you have bad credit is very high. Sometimes you can end up repaying double what the car cost you.
If you have bad credit and are looking for car finance then I would say this, really think about it. You will be committing yourself to a loan for the car and being able to repay it each month for however long that loan lasts for (although you may be able to Voluntary Terminate halfway through – that’s another story).
This time around despite my bad credit my APR was a lot lower than my previous car. It is still high but it is manageable.
However I cannot stress how expensive bad credit car finance can be. Really expensive. If you have any other alternative then go ahead and try that instead. Your bank account will thank you for it in the long run.
A Flip Side to my thoughts
As a side note, if you do repay your car finance on time each and every month. Once paid this will look good on your credit report and may take you one step closer to being able to avoid these high cost loans altogether. Just thought I would mention that too!
Here is a quick summary of what I think about getting Car Finance with Bad Credit.
- Despite Bad Credit you may be able to get Car Finance.
- Car Finance when you have Bad Credit is very expensive and not to be taken lightly.
- Really think about whether this is the right option for you. Get advice from someone you trust.
- Look at alternatives for financing your car or arranging transport.
- If you repay your loan in full this will look good on your credit report.