If you are considering applying for car finance, there are a number of things you will need to think about.
You may have many questions surrounding car finance, and here are some of the most frequently asked along with the answers.
If you have a bad credit record, you may still be able to get access to car finance.
However, you will normally need to search for a lender who is willing to provide financing to people with bad credit records. Not every lender will do this, but there are some that will.
If you have a CCJ, this does not automatically prevent you from getting car finance. There are some lenders who will be unwilling to lend to you, but some may be prepared to provide you with finance. You will normally need to search for these lenders.
You may find that it is harder to get access to car finance when you are self-employed. However, it is by no means impossible.
Many lenders will be willing to lend to you even if you are self-employed, and they will often use a range of factors to decide whether to lend to you.
Some lenders advertise that they provide guaranteed car finance, but actually they can never guarantee to provide anyone with finance.
Lenders will always have to check the circumstances of each individual before deciding whether to provide them with finance.
Some lenders will ask for a deposit when you apply for car finance, and the size of this varies depending on the lender and various other factors. But it may not always be required, so it is possible to get finance without a deposit.
If you have no credit history, perhaps because of your age or because you simply have not had any access to credit before, this does not necessarily mean that you cannot get car finance.
Some lenders are willing to lend to people even if they have no credit history, and they will often look at other factors to determine whether to provide you with car finance.
If you are given a loan to buy your car and you make all your monthly repayments, you may well be able to improve your credit score.
Borrowing money and paying it back on time generally helps your score.
However, if you fail to make any of your payments, the opposite is normally true and you could end up hurting your score, which is why it’s always so important to make your repayments on time.
Always Ask Lenders if You Have Questions about Car Finance
If you are considering applying for finance, the answers to these frequently asked questions will hopefully help you in the process.
However, remember that all lenders are different and have different requirements.
This is just a general guide, so always ask individual lenders if you have any specific questions you need answering.