Liviu Marcus
For the majority, who heavily depend on public means, ridesharing, cycling, and taxis are not feasible. When you don’t actually have the possibility of purchasing the tickets well in advance, the price becomes unaffordable and you would have to travel at very awkward hours.
Naturally, in most locations, having one’s own car is the only feasible way out. Hence, those who are able to afford the purchase and maintenance of a car invariably do. But, some people have the extra problem of having a poor credit score.
How hard is it to get a car loan with bad credit?
In such a case, getting car financing is harder. Irrespective of where you reside, most lenders will deny you. But most importantly, there are some that will not. Here, we discuss how to get them. Apply for a loan after this, without the need to worsen your credit status with unsuccessful applications.
Concentrate on the firms that are experts in bad credit car finance
The first step is to browse the internet and look for bad credit car loans. You should not waste your time on a company that does not provide these services. The applications are processed automatically without human intervention. As such, there is no possibility that you will have an opportunity to represent your case and convince someone to give you your loan.
Use a comparison website.
If you come across a comparison site that offers a service for low credit score car loans, use it. It is an effective way to discover what your alternatives are.
Compare the deals.
You should be pragmatic and face the fact that you will have to pay extra for your financing. The situation is the same regardless of whether you are planning to buy, or lease, a car on an HP or PCP package. However, it does not imply that you should not compare the transactions and select the cheapest. In the event that one of them is a lease deal, make sure to calculate the total cost of the car at the end of the agreement.
Consider using a co-signer.
Sometimes, you will be given the option to have the loan secured by a co-signer. If you find a family member or a friend who will do this, your monthly payments can be much lower. They are assuming loan liability. In the event of a delayed or non-payment, they will incur the debt and other costs connected with the default on the loan. Therefore, it is essential to remember this before asking someone to co-sign for you.
Look into the option of a secured loan.
If you already have some assets, you can use them as security. The kind of security assets that can be employed to guarantee your loan will depend on the lender. The majority will lend against property, savings, and shares, and a few will lend against future paychecks.
Read the small print.
Irrespective of the approach you take, do not hurry into a deal. Do some research, go through the details, and make your own calculations of how much it will cost later to buy the car on finance. If that’s the case, then it can be a good idea to purchase a way cheaper car, drive it for a few years, and save up a deposit.
Do your best for your car and improve your credit rating.
Finally, do not squander emotional energy worrying that having to purchase or lease your car has cost you more, primarily due to your poor credit score. On the contrary, take the situation into account and appreciate the freedom a car provides. But, you should also strive to ensure that you have a high enough credit score to avail of a lower APR next time you are in need of a vehicle.
