If you are thinking about purchasing a new car on finance, sort your credit out now. Pay off any outstanding debts you have on your credit card, keep up with any new outgoing payments and try to avoid making large purchases that may affect your credit rating. Having red flags in your credit history (such as late repayments or bankruptcy) may be a problem. Having current red flags on your credit history, however, is even worse. Drivers should sort out their financing standing at the earliest possible opportunity and ensure they stay on top of it, just like handling a complex project , so is car finance.
However, for some drivers, bad credit is unavoidable. So what do you do if you want to purchase a new vehicle on car finance? There is one particularly good option available to you. This, for instance, would be to make a bigger down payment than your lender would usually require. Lenders may be anxious about your ability to keep up with monthly repayments if you have a rocky credit history. A bulk deposit, however, ensures you monthly repayments are not quite as high. This makes you a lower risk in the eyes of a lender, thereby giving you a greater chance to have a car finance application accepted.
Another option, furthermore, would be to think about getting a used car on finance instead of a new one. Yes, many people prefer to get a new vehicle on finance because it can reduce insurance costs and ensure you have a vehicle that lasts longer. However, these cost more per month compared to a used vehicle. This makes it harder for drivers with a poor credit history to acquire car finance. You don’t have to be a geek cube to figure that out. The good news is that there are many great alternatives available second hand, all of which may be available to drivers who have a flawed credit history.