There’s bad credit, and then there’s really bad credit. Just as there’s bad car finance companies, and really bad ones. Sorry to get things off on such a negative note! Don’t worry. Things brighten up from here. Promise!
At Albion Car Finance, we like to tell it how it is, you see. If someone with a poor credit rating comes to us looking for car finance, and they simply haven’t got a hope in hell of getting their application approved by the panel of lenders that we use, we tell them straight. No point sugar-coating it or leading them up the ‘car finance garden path’. Fortunately though, rejection rarely happens. Why? Because even if an applicant has really bad credit, there may still be a chance that car finance can be arranged for them, through us.
Don’t accept these excuses from others
Most motor finance experts and car dealerships would much rather say “yes” to an applicant than turn them down, of course. Excuses made by some, that securing funding from lenders is “much harder now than it used to be”, due to “the state of the British economy”, “post-Brexit concerns”, “the Credit Crunch’s legacy”, “the risk-averse attitude of high street banks” etc. are usually exactly that: excuses! The truth is that every day people across the country are approved for car finance, driving away high quality new and used vehicles on repayment terms they feel confident of fulfilling. And many of these borrowers came to the application process with an appalling credit record.
Have you got a ‘non-standard’ profile?
As an individual, you certainly don’t need to have an unblemished track record when it comes to your credit history, as some lenders would have you believe. And if you own a business and are looking to secure finance for company vehicles (from a couple to an entire fleet!), showing evidence of healthy profits over the past financial year won’t necessarily be a requirement – you could still get the car financing you need, even if you’ve only managed to break even over time, or made a loss.
If your credit rating is particularly bad, your profile in the eyes of lenders and credit rating agencies will be deemed as ‘non-standard’. If you also can’t produce proper accounts or evidence of your trading history (as a business), you’ll probably be marked down a ‘high risk’. Typically, where finance is secured, the terms might be a little more stringent than if your profile was considered as ‘standard’. You could find yourself having to pay an initial deposit when signing the finance agreement, and the monthly repayments on the car loan thereafter will probably be higher than normal.
But you’ll still get a set of wheels, at last, or the fleet you need to take your business where you want it to go (literally!).
Some lenders will take a risk
If you’ve got bad credit, you need to find a car finance company willing to look past that (and any other weaknesses in your application). They should also have access to a varied assortment of lenders – a panel of funders amongst which there will hopefully be someone willing to take on a ‘non-standard borrower’ albeit on strict terms, after assessing how much of a risk you are.
It’s quick and easy get the ball rolling on all this. You could be out on the open road with the wind in your hair and the car radio blaring out banging tunes sooner than you think!