It’s natural to assume that if you have poor credit, you can forget about affordable car finance. In reality, this simply isn’t the case at all. A growing network of specialist lenders across the UK is introducing car finance based on income only. Or to put it another way, your credit score is inconsequential, if you can comfortably afford the loan.
All Applications Considered
Make no mistake about it – credit scores are still considered the be all and end all by most lenders. Walk into any major High Street bank with a poor credit score and you can expect to be laughed right out the door.
However, this doesn’t mean it’s the same story with the UK’s more dynamic independent lenders. Whatever it is you have your eye on, there’s a way to get hold of it – poor credit or otherwise.
In the case of car finance, more specialist lenders than ever before are considering each application on its individual merit. Slowly but surely, more forward-thinking lenders are acknowledging the fact that there’s more to life than credit scores. Not just this, but also the fact that it’s perfectly possible to be in a strong financial position and have a pretty low credit score.
It’s never been easier to inflict damage on your credit report, which is exactly what the vast majority of people do from time to time.
No Credit Check Required
In a typical working example, a prospective borrower could have a strong and reliable stream of income, along with comparatively few existing debts. Nevertheless, a handful of oversights two or three years ago rendered their credit score a little on the unsightly side.
With a major bank or lender, this is all that matters. A credit check is carried out and their application is rejected immediately. This, despite the fact that they can clearly afford the loan they are applying for.
Independent car finance specialists work in a different way. Rather than carrying out these binary ‘yes or no’ credit score checks, the details of the application are considered carefully. If the applicant is in a strong financial position, they’re considered eligible for the loan. Some view credit checks as something of a side issue, while others have eliminated credit checks from the equation entirely.
Best of all, submitting an application to a poor credit car finance specialist won’t necessarily have an impact on your credit score. Some lenders now carry out ‘soft’ checks on behalf of their customers, establishing ahead of time whether or not they’ll qualify. All while preserving your credit score, irrespective of how damaged it may already be.
Getting a Good Deal
On the whole, getting car finance based on income only is becoming easier all the time. If you’re earning enough money to cover a car loan, you’ll almost certainly qualify for car finance with a specialist lender.
As for getting the best deal, it is the usual case of comparing options from as many specialist lenders as possible. Along with focusing your attention away from the High Street, it can be helpful to take your business to an independent broker. Let them scour the market for the best deals from the UK’s most dynamic lenders, rather than wasting time and effort doing it yourself.
Contrary to popular belief, applying for car finance with bad credit doesn’t necessarily mean being handed a bum deal. It’s simply a case of looking in the right places and targeting those who don’t think the world begins and ends with credit scores. – poorcreditcarfinance.co.uk