If you've been wondering whether it's possible to secure car finance with less-than-perfect (Fine, we’ll say it – bad) credit, you'll be relieved to know that you can indeed. The key phrase here is ‘can’, meaning that although the possibility exists, your options may be limited… but more on that later. For now, let’s break down what will be covered below so you can find out what kind of finance will best suit those unfavourable credit ratings.
Your credit score and history can be used to tell lenders (car dealerships, private dealers, etc.) the likelihood of you meeting their monthly finance payments. A low credit score might signal some level of risk. Missing payments, financially associating with someone with a low rating, having multiple outstanding debts, or even lacking a prior credit history can contribute to a low credit score.
The good news? Officially, there’s no minimum credit rating required for car finance approval… However, some lenders, on a private case-by-case level, may not be willing to work with poor credit ratings if it poses a risk to them. This could result in a decision to restrict what you can access, see increased interest rates, or even not offer finance at all.
Most dealers will usually offer a Personal Contract Purchase or Hire Purchase when you have bad credit. This is because you’re securing a loan on a car, allowing them to repossess it if you’re unable to keep up with finance payments. But even with a challenging credit history, there's a wide range of cars within reach:
Leasing can be an attractive option for individuals with bad credit. While traditional financing may come with higher interest rates, leasing typically occurs at a lower credit score. This allows you to get behind the wheel of a newer car with lower monthly payments.
Starting your search for a car finance deal is easy; our experts can assist you in finding the best car for your credit rating. We recommend having the following information on hand:
Lenders use your credit reporting agency to assess your creditworthiness. These agencies collect and maintain credit information, including credit scores and credit histories.
At Eden, we believe everyone should be able to drive the car they desire. Whether you're dealing with a challenging credit history or simply new to credit, we're here to help you find a car finance solution that fits your needs.
Rest assured you're not alone if you're concerned about your credit situation. Many individuals have successfully obtained car finance despite facing similar circumstances. Our team is dedicated to assisting you in your journey towards car ownership.
Remember, it's not just about getting a car; it's about taking positive steps towards building a stronger financial future. Let us be your partner in this endeavour.
Ready to explore your car finance options? Contact our team today and take the first step towards driving the car you've always wanted.