CAR FINANCE FOR BAD CREDIT - 5 TIPS ON HOW TO GET ACCEPTED

For many people, a car pays an essential part of their life - whether it is needed to get to work, move the family around or even to pop to the closest shop. There are few people, however who can afford to buy a car outright, meaning that for most, the solution is to get some sort of credit. With car finance, buyers can use a loan to get the car that they need.

Unfortunately, there are some people who have slipped up or been through difficult times in the past, meaning that they have a bad credit rating, and this can often have the effect of being turned down for Car Finance.

If you are one of those people, fortunately, there are some things that you can do to help yourself to get accepted for car finance. So, here are five tips to help you to get accepted for car finance if you have bad credit:

  1. Make sure your details are right - Make sure that your credit check is registered to the same address as you are on the electoral register, and that you are holding a full UK driving license.
  2. Get a small credit limit credit card - Take out a credit card with a small credit limit and set up a direct debit to cover your minimum monthly payments. This will give you a good background to show that you are now responsible and dedicated to paying off the money that you owe on regular basis.
  3. Deposit - Try to save up for a small deposit and have this ready to pay when you take out the loan. By having a small deposit ready, you can improve your application chances by showing that you have saved up as well as reducing the amount of loan that you will need to take out.
  4. Get a mobile phone contract - Take out a mobile phone contract and again, set up a direct debit to cover your monthly payments.
  5. Limit your Applications - Don't apply for too many loans from different loans companies, as the more searches that are made on your credit history are made, the lower your credit score will go.

When you are looking to apply for car finance - especially if you have a low credit rating, it is important to shop around to ensure that you get the best deal. By following these tips you can give yourself the best chance at securing the money that you need to buy the car that you need.

Our friendly team here at Carzoopa can cater for all of your financial needs so why not check out our Used Cars For Sale In Southampton and if you see one that's right for you, pick up the phone or pop down to our showroom today!