It can be a frustrating time when looking to buy a new car, especially if getting the finance you require to fund it is proving to be difficult. If you have been declined recently, your first instinct may be to find out why that is, possibly leading to checking your credit score. You may discover that you have a low credit rating currently which could go a long way to explain why you’ve not been successful in your recent application. The good news is, having a bad credit rating doesn’t have to be the stumbling block on the way to getting car finance as it seems. Here are some of the ways you can still get a car loan with bad credit.
Find the Right Lenders
You may have discovered that having a bad credit rating means many of the big lenders, such as the banks, won’t be able to help you get finance. This is because they may have stricter lending criteria in place and may only offer finance to those with good to excellent ratings. A lot of decisions are made autonomously, so if your credit score doesn’t match up to these standards, you can be automatically declined before being fully assessed. Fortunately, there are bad credit car loans online from specialist finance companies that can help in these situations. By finding the right lenders before applying that match up to your current circumstances, you’ll increase the chance of being successful and get Guaranteed Car Finance.
Review Your Income & Expenditure
Once you have found the right lender to apply through, you’ll need to ensure you can afford the car loan you want to get. After all, even the most specialist car finance company won’t be able to lend to you if you can’t afford the repayments. Spend some time reviewing your finances and look specifically and what you can comfortably afford to pay each month. If you find that after all your primary expenditure you have very little leftover, or even a negative figure, then it’s time to look at areas where you could reduce spend and increase your disposable income. Hopefully, when going through your income and expenditure this is not the case and you are left with an amount you can afford to pay. This will help when applying for bad credit car finance, as you’ll be able to demonstrate how much you can pay towards the car loan.
Have Your Bank Statements Ready
One of the benefits of using a specialist car finance company is that they will take the time to review what you can afford to pay. This usually will involve them asking you to provide proof of your income, normally via your bank statements. Before you apply for any car loan, it can help to make sure you have at least the last 3 months available to send quickly to the lender. If you are already prepared with these documents, then you can help the lender reach a decision much quicker. If you can’t download your most recent bank statements online, then speak to your bank directly and they will send these to you.
Hopefully by following the above, you’ll be able to get a car loan with bad credit much more easily. All it takes is just a little bit of preparation and you’re ready to go.