In this article we’re going to give you the tips and tools you need to improve your bad credit score to a good credit score, let’s begin!
A bad credit score is like an awkward breakup.
It comes as a result of your previous decisions and can affect your new relationship (which in this case is your finance agreement with a lender).
However it isn’t the end of the world – and we promise you can move on!
Imagine your new partner is the car you’ve fallen in love with and the new relationship is your finance agreement. Some lenders will judge you on your past and refuse you a loan, but Tailor Made Car Finance will be the understanding wingman who helps you turn over a new leaf.
The Nitty Gritty
Have a realistic wishlist:
We want you to get excited about a new car but try to aim for a vehicle that is within your budget. It will increase your chances of approval if you are applying for a loan for a car which is both affordable and realistically with your budget. Many modern vehicles in this lower price range still provide the everyday luxuries and technology you might expect from a more expensive car.
Access your credit score and report:
Doing your homework on your current standings in the financial world will enable you to be more prepared. You’ll be able to see what potential lenders are judging you on and therefore have realistic expectations. There’s also the added incentive that if you see a false record or mistake on your report, you can contact the company to rectify this and so improve your chances of obtaining a loan. Websites such as Experian.co.uk and moneysupermarket.com can help you do this for a small fee. Mention UKCarCredit website and link.
Last year, according to TheCarExpert, there were just under 960,000 private new car buyers who took out some form of car finance, totaling a record of nearly £19.4 billion borrowed.
You will have to pay a higher interest rate because of your poor credit score, but this doesn’t limit you to one lender. You should still try to get the best deal and explore your options, a bit like dating. The rates will vary and you could check with banks or credit unions to see if you are eligible for pre-approved financing, says chief financial analyst at Bankrate.com, Greg McBride.
Always be prepared:
There’s a reason this is the Scouts motto. It’s sensible. Lenders are looking for proof that you are a good credit risk or, at least, you’ll be able to repay the approved loan amount. They will request particular pieces of documentation; they’ll access information held by 3rd parties and they’ll check any employment references you provide. These include proof of ID, employment details and proof of income, driver’s license, vehicle information, and bank details.
How can Tailor Made Car Finance help?
We offer excellent rates and repayment options meaning there are variable APR Rates and repayment schedules.
Most of our customers drive away the same week. We don’t waste time going back and forth, but we do like to ensure your new car is professionally prepared and delivered directly to your drive.
We have an excellent record for securing finance for people who have been refused in the past, giving that hope of obtaining finance for those who thought they would struggle.
Soft credit check:
Before you submit a formal application on your behalf, we will perform a soft search to check your credit history references. There will be no record of this on the central credit reference databases because no application has been made and so this doesn’t affect your credit score. To liken it to your new relationship again, this is a bit like social media stalking the person you want to date without liking any photos. You get the information you need to check they are who they say you are, but you leave no trace of doing so.
This is essentially your dating app. You can see if you think you might be compatible with this new partner (whether you can afford the new car) prior to making an application. The calculator will weigh up the costs and repayment term against your credit rating.
A low credit score can limit your car finance options, but if you buy a new car and pay it off efficiently, it can actually help to reverse the damage and rebuild your credit rating.
Start your application online or if you are still unsure whether we will be able to help you, contact us.
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