Getting a car on finance is a really exciting time but if you have a low credit score, you may struggle to get approved. When you apply for any type of loan, credit or finance, a finance lender will perform a credit check on your credit file. They do this to get an idea whether you will be trusted to pay back your loan on time. If you’ve struggled meeting repayments in the past, you are seen as more of a risk to a lender. However, there are a few ways in which you can increase your chances of getting approved for finance so read on for some ways to buy a car with bad credit.
1. Always make your payments on time
A great way to show potential lenders that you will meet your repayment deadline is to always pay your debts back on time and in full. Missed or late repayments can seriously harm your credit score and impact your chances of getting a loan or finance in the future. Building good financial habits and meeting your deadlines can help to get you approved and make you less of a risk to lenders. If you don’t have a credit history, you can easily build credit by using some as easy as a mobile phone contract and paying it off each month.
2. Use a car finance broker
Car finance brokers make their money by introducing customers to lenders, but they don’t charge any customer fees. If you are applying for bad credit car finance, you may consider using a car finance broker to help get you the best deal possible. Car finance brokers work with a range of lenders, usually more than a car dealership could offer. They put your application in front of their lenders and match you up with the most suitable finance deal. You can then use your finance deal at any UK dealership that is approved by the FCA. By using a trusted dealership, both yourself and the lender can be assured that your car will be in good working condition and gives you more buyer protection.
3. Limit your applications for finance
If you do want to shop around for the car you want and apply with multiple lenders, you should stick to soft search credit checks only. A hard search credit check is usually performed when you apply with a finance lender and they are able to take a full look at your credit file, including any applications for finance and the outcome of the application. Multiple hard search applications in a short space of time can negatively impact your credit score and indicates to lenders that you are desperate for credit. A soft search check on the other hand is not recorded on your credit file and does not harm your credit score.
4. Save up for a deposit
There are many options if you are looking for no deposit car finance. However, if you have a low credit score and want to get a new car in the next few months, you should consider having a deposit to put down for finance. A deposit is really beneficial and also shows good financial responsibility to potential lenders. Lenders like applications who have a deposit as it means you don’t have to borrow as much from them. For you, it also means lower monthly payments and usually a lower interest rate offered which saves you money in the long run.
5. Consider a guarantor loan
For many people with bad credit, a guarantor loan can be out of the question. A guarantor car loan is when someone else such as a friend or family member supports your application and agrees to pay the loan if you fail to do so. If you have bad credit, it may be hard to find someone who will support your application. Having a guarantor on your application reduces the risk for the lender and can increase your chances of getting approved. If the loan is not paid, both the applicant and the guarantor could have their credit score negatively affected.
6. Cut ties with people with bad credit
When you take out finance with someone else, you will be financially linked on your credit file. If you’ve had finance in the past with someone who has bad credit, it can negatively affect your credit score. You can disassociate yourself from them by contacting the credit referencing agency who provided your credit file.
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Clean with warm soapy water, rinse and leave to dry thoroughly. Auritech sell a cleaning kit separately too.
Auritech ear plugs come with their own storage case that you can clip to your keys so you won't forget to take your ear plugs with you.
They retail for £19.95
If you have ears that are prone to wax you might find that using ear plugs pushes the wax further down the ear canal, risking it getting impacted.
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