Car finance with bad credit
It’s something that has affected a huge percentage of the western world’s population in recent years - especially in the UK and that the issue of having
bad credit. When looking to get a new car many consumers choose to fund their new purchases using a car finance plan as not many people are either in a
position to purchase a car outright for cash or due to depreciation issues - are willing to do so. The first time the majority of people realise they have
problems with their credit rating it is usually too late and it is at the point where they have already picked their new car - perhaps even been for a test
drive and in their minds are as good as owning the vehicle. Bang! That’s when it hits and it certainly hurts to be told that unfortunately you have failed the
credit score with the lender and that unless you are able to pay for the car in full then there’s no way you will be driving home in it. Essentially this means
that you are now what is termed a subprime customer and everyone and anyone knows the stigma that this labelling attracts and in recent years it has also
been the case that many many finance house have simply pulled out of the higher risk subprime car finance market altogether.In real terms bad credit car finance has become difficult to find and secure approval on. In the good old days it seemed like
these companies were throwing credit at anyone who wanted it - employed or not! As we found out this developed a bit of a small problem when as expected these
high risk customers with bad credit ratings defaulted on their agreements causing a huge black hole in the balance sheets of those lending. As the markets
have now settled down again there are still specialist brokers out there that operate alongside finance houses who amazingly will still offer car finance with
bad credit customers.
bad credit. When looking to get a new car many consumers choose to fund their new purchases using a car finance plan as not many people are either in a
position to purchase a car outright for cash or due to depreciation issues - are willing to do so. The first time the majority of people realise they have
problems with their credit rating it is usually too late and it is at the point where they have already picked their new car - perhaps even been for a test
drive and in their minds are as good as owning the vehicle. Bang! That’s when it hits and it certainly hurts to be told that unfortunately you have failed the
credit score with the lender and that unless you are able to pay for the car in full then there’s no way you will be driving home in it. Essentially this means
that you are now what is termed a subprime customer and everyone and anyone knows the stigma that this labelling attracts and in recent years it has also
been the case that many many finance house have simply pulled out of the higher risk subprime car finance market altogether.In real terms bad credit car finance has become difficult to find and secure approval on. In the good old days it seemed like
these companies were throwing credit at anyone who wanted it - employed or not! As we found out this developed a bit of a small problem when as expected these
high risk customers with bad credit ratings defaulted on their agreements causing a huge black hole in the balance sheets of those lending. As the markets
have now settled down again there are still specialist brokers out there that operate alongside finance houses who amazingly will still offer car finance with
bad credit customers.
Car finance for bad credit
With any finance application - including car finance or even car leasing deals you will still have to have a credit check done before getting approved. What many people incorrectly believe is that if a check is done then they will stand no chance if any bad credit is showing. That is not the case as there are no real rules with how a credit check works and all it does it let the lender view your previous history as far as how much credit you might have had,if you paid it back when you should do,if it was defaulted or you still owe money to whoever lent it you and also other factors such as voters roll trace and previous addresses you have lived at. This allows the company that is considering your application to decide if you are too much of a risk to lend too. With the lenders who operate in the car finance for bad credit market the criteria will allow for previous problems as what they do is look at your current circumstances as opposed to the past. Where a prime car finance company may decline you for having too many late payments on file or for going over your overdraft regulary a bad credit lender would be able to look past this. Obviously if you have managed to have a number of failed car finance agreements very close to putting your new application in this wont look good but if you have say mortgage arrears from 18 months ago then you will stand a very good chance of getting approval.
For further information please contact MSG Cars at http://www.msgcars.co.uk/
For further information please contact MSG Cars at http://www.msgcars.co.uk/