IMPORTANT INFORMATION FOR ALL CAR BUYERS
Buying, leasing, Renting or Hiring a new or used car,a major factor is knowing your credit rating, have you been refused credit/finance through defaults, arrears or CCJ (County Court judgments)?? Many clients bad credit or no credit at all through self employment etc will always face much higher interest rates than those with a good credit rating. So research which purchasing method is best for your next bad credit car finance? What car Rental/Hire/Leasing/Loan options do you have if you have bad credit and what can you do to improve your credit rating? Maybe this article will help explain?
Why is credit an important factor when choosing your Car
Knowing what adverse credit or any other form of bad credit is key to finding the best deal on your next car. You need to be realistic in your expectations as having bad credit will limit your options, which is not in doubt. Your bad credit rating will directly control the level of interest you will pay as well as your credit limit. Leasing companies will also in most cases ask for higher down payments, while finance companies will generally ask for higher interest rates if you have a poor credit history. Bad credit car finance can be very difficult to obtain and making more than one will further harm your rating as it will show many searches on your credit file. Think before applying and choose the correct hire/rental company first time like Master Rentals. Ask for a copy of your credit file from Equifax or Experian, this will show you where you need to improve!
Self Employed or Living with Parents?
This could mean that you do not have any credit rating at all, which is in the finance companies eyes is as bad as bad or adverse credit. Most young adults and the self employed have this problem, at Master Rentals we understand this. This is what we look for in an application is simple.
Monthly income – This must be at a level where you can comfortably afford to pay for your new car, for example consistent employment, proof this and you have passed!
Responsible for your address – It helps if you have been on the voter's role for a period of time, utility bills in your name, but if you live with your partner or your parents this may not be possible. We need to find you so your driving license must correspond with your given address.
The importance of shopping around
Of course it is vitally important to shop around for the right bad credit car finance deal. Though making several applications can hurt your credit rating, you can use the internet to your advantage to discover the rates and options. .Banks and finance companies are rarely consistent in the loan rates they offer, and there are many exclusive loan providers that can offer better terms.