- February 15, 2017
- Posted by: Car Finance Plus
- Category: Car Finance
According to a report in the Independent newspaper on the 5th of January 2017, the Society of Motor Manufacturers and Traders (SMMT) predicts that car prices are going to rise in the 12 months ahead.
With those increases in the offing, now might be a good time to think about buying your new car or replacement second-hand vehicle. Either way, the purchase is likely to require some form of finance – record sales of new cars in 2016, said the SMMT on the same day as the Independent’s story were made possible largely because of the availability of attractive and affordable finance deals.
What if I have bad credit?
Attractive and affordable finance is all very well, but what if you have bad credit? Isn’t that likely to mean that any lender is going to regard any application for credit with utmost suspicion and reject your request for the necessary finance? Aren’t bad credit car loans going to be impossible to arrange?
Many lenders consider your bad credit to represent a greater risk of your running into difficulties in repaying, and defaulting on the repayments, of any loan. The assessment of your credit status is carried out by lenders through requests to the principal credit reference agencies in the UK, Experian, Equifax, and CallCredit.
The credit reference agencies might reveal a bad credit record for a number of reasons, but principally because of your past difficulties in managing debt. Those difficulties might be evidenced by:
- a past declaration of bankruptcy;
- County Court Judgments (CCJs) that have been made against you as creditors seek to recover your outstanding debts;
- your entry into an Individual Voluntary Arrangement (IVA) with creditors; or
- the fact that you have had to make a formal Debt Management Plan in your struggle to manage your debts.
Any of these events is almost certain to result in your acquiring bad debt status and make many lenders reject any application you make for further credit.
How we can help
Whatever the reason for your bad debt status, here at CarFinance Plus we are able to help you secure the finance you need to buy a new or used car.
How do we do it?
- in the first instance, we make an immediate assessment, on the basis of the information you have provided us, of the likelihood of your securing a loan;
- this represents a snap-shot of your current financial circumstances and takes into account your record of managing credit and debt in the past;
- using that information, we are able to make a “soft search” of those lenders likely to accept any application for credit your make – and, through this pre-application check, help you avoid the situation in which your application is turned down and your credit rating adversely affected still further;
- if it emerges that you have a poor or bad credit rating, we are able to refer your application to one of a number of insurers in our network who specialise in the provision of credit to people with less than healthy credit histories.
If you are looking for a new car and have bad credit, therefore, we are typically able to help you secure the required finance.