Today is another post about Bad Credit. This time we are going to talk about Bad Credit Car Finance. We have already looked at Getting Car Finance with Bad Credit and today we are going to look at what you should do before you apply.
Is it worth it?
How much do you need a car and how soon do you need it? I ask this because of one reason. Bad Credit Car Finance is very expensive. In some cases you could end up repaying twice the cost of the car. So if you buy a car for £7000 you could end up repaying £14000 over a number of years.
Instead could you save the money to buy a car? If you can then do that. Your wallet will thank you in the long term. You also don’t end up in debt.
Check your Credit Report
If you are still reading then I guess you want a car on finance. OK let’s carry on then.
When you make your application for Car Finance you are going to be credit checked. It’s a simple fact. What if you could check you Credit Report beforehand? Well you can do that using Noddle. Noddle offer a free service that allows you to check your credit report. Take a look at my Noddle Credit Report Review for more information.
Clearscore also offer a free credit report. I don’t have a review yet but in short they are good too and free. You should be able to find them on Google.
Why would you want to check your credit report? The answer is to make sure there isn’t any mistakes. If there are this could cause your car finance application to be declined. You should definitely consider getting your report, then checking it. A mistake could also mean you are charged a higher rate of interest. Translated this means your car loan could be more expensive than it needs to be.
Use a Car Finance Broker
If you have bad credit and if you are reading this post then you probably do, you should consider using a car finance broker. A broker has access to a number of bad credit car loans and saves you making the applications individually.
In my previous article about Bad Credit Car Finance, I mentioned Car Finance 247 and Zuto. In fact I have written a review of Car Finance 247 if you would like to know more.
To get back on track a broker is your best bet but here are some bad credit lenders I know of: –
- Advantage Finance
- Vehicle Trading Group
There are more out there and a Broker will probably know of them.
Think about it
Again I must say, think about the cost. It is so expensive. Take it from someone who knows. Will you be able to afford any repairs to the car in the future along with the monthly payments?
Find a Car
If you apply through a broker such as Car Finance 247 you will need to find a car. You can apply before finding a car to see if you are likely to be approved or not.
Find a car you know you can afford and that will suit your needs. Get one that is cheap to run and tax rather than something that is expensive.
Check Reviews of potential lenders or brokers
If you have a certain lender or broker in mind you should check their reviews. Most companies are reviewed now. Simply go to google and type the name of the lender or broker followed by the work review.
See what other customers think of them and then make up your own mind as to whether you want to do business or not.
Once you have settled on a car, are happy that your credit report is in order and that the lender or broker checks out you can then make an application. Good luck.