Getting car finance with really bad credit may seem like a nightmare but it doesn’t have to be that way. There are lenders out there who are willing to give you a loan if you have less than perfect credit. However, you will pay a much higher rate of interest on your finance than you would if you had excellent credit. The reason for this is that lenders view those with bad credit as a potential risk. They don’t feel safe in handing over their money to those who will not repay it. This is why it pays to know how you can get car finance with really bad credit.
One way to get car finance with really bad credit is by going to an online lender. These companies actually give a much lower rate of interest due to the way they obtain their loans. All they really need from you is the details of your income and your debts. Once you enter this information, they then compare it with their database of clients so that they can find the most suitable finance for you. It’s quick and easy, so it makes sense to go online if you want to get car finance with really bad credit.
If you don’t like the idea of working with an internet lender then you can try a regular lender. Just like the online lender, they will check your credit rating to find the most suitable loan for you. If your rating is decent, they should be able to help you to borrow a small amount. If your rating is really bad though then you may have to pay very high rates of interest.
Another option available to you is to take out a personal loan. Although this kind of loan will have a much higher interest rate than the one you can get online or from a regular lender, it could still help you get finance. You would first need to show them that you have enough income to repay the loan. This could be a bonus on your next pay check or extra money you get from bonuses.
A personal loan should not be the only option you are exploring as the only way to improve your credit rating is to pay off your debts. By doing this you will be showing potential lenders that you are responsible. If you are able to do this you will soon find that you are in a better position to get competitive rates for the loans you are interested in. When you have less debt you will also be able to pay more attention to your credit rating. This will lead to lower interest rates.
Before you embark on applying for a loan, it’s a good idea to do some research. See what others have said about repaying a loan. Although you may think that paying back a loan will make your credit rating looks better, it can actually do the opposite. Just because your credit rating looks good does not necessarily mean it is good enough. So be sure that any quote you get is for a new loan and not a refinance of an existing loan.
Another way to get car finance with really bad credit is to use a dealership that specialises in helping those that have poor credit. You should be able to find a range of loans at these dealerships that do not require a credit check. They will usually base their interest rates on your FICO score and will often reduce the loan costs for those with lower ratings. However, you should expect to pay quite a bit more. For this reason it may be better to go online with a specialist and allow them to search on your behalf.
If you still feel that the quotes you are getting are too high, then you may need to get a few quotes from different lenders to compare. A lot of people do not realise that car finance companies calculate their prices in different ways. This means that one lender may look like it is cheaper than the next. If you want to get car finance with really bad credit, then take advice from a specialist and allow them to shop around on your behalf. This way you will not only get the best deal, but you will also end up paying the lowest price.
