Is It Possible To Get A Car On Finance With Bad Credit?

Is It Possible To Get A Car On Finance With Bad Credit?

Having a bad credit history can leave many people feeling uncertain about their future borrowing prospects. Due to the negativity around having a poor or bad credit score, it can restrict you from some finance options. From buying a house to purchasing a car, to even taking out a mobile phone contract. Many lenders will rely on what your credit rating tells them to form a decision on whether they can help you, so is it possible to get the finance you need whilst having bad credit? In short, yes. Here’s why:

Bad Credit Car Finance Lenders

If you‘ve been left frustrated that the banks aren’t willing to help you when looking to purchase a car, it’s time to find lenders of bad credit finance who specialise in helping people just like you. That way, you can find a vehicle to meet your requirements, without worry that the lender will look at your credit history and turn the other way without considering other aspects. Specialist lenders help customers who, although they have bad credit, can demonstrate they can afford loan repayments. If your past finances leave a lot to be desired, but your current situation is much better and you can demonstrate this, the chances of being approved could move in your direction.

Now, whilst specialist bad credit lenders may be able to take your application, they still cannot guarantee you will be approved. Like all other lenders, they need to fully assess your application first. A credit check is still required but may not be the only factor building towards an approved lending decision. You’ll need to provide the proof you can afford the car finance and sustain the repayments, otherwise, you could still be declined. 

Making Better Financial Decisions

If you are currently someone with bad credit, you should ensure you are in the right financial position to take on further borrowing. As, if you are not and then apply for car finance, you could make your situation worse by overextending your monthly outgoings. Bad credit car finance lenders may, for this reason, fully assess your income and expenditure, usually requiring your most recent bank statements to do so. If you say you can afford it, but in fact can’t, the lender will see this from your supporting documents. This is to protect you as much as it is to protect them and follows responsible lending guidelines. 

As long as your current finances are in good shape, you do have the money to afford repayments and can maintain your essential outgoings, buying a car on finance with bad credit is entirely possible. To be sure, you should review your finances before applying for any car finance and be confident you can afford it. Then you’ll find, even with bad credit, there are still plenty of trusted options to choose from when buying big-ticket items, like a car, with ease.