Can I buy a finance vehicle with a bad credit score?
Bad credit can hinder many expenses, setting you back from holidays, mortgages, and cruising in your new car. Fortunately, it doesn’t always have to be that you miss out due to ill credit; the world of car sales has modernised to get you on the road, in a reliable vehicle, when you require it most. Atlas Autos is here to explain financing possibilities, regardless of your credit situation.
How does my credit score dictate if I will be accepted for finance?
Your credit score is a simple indicator to lenders as to how reliable you will be when making repayments on your new vehicle, ultimately helping them decide if they will let you borrow their money.
A credit score typically ranges between 300 to 850 points; UK adults have an average score of 600-750 - it is free and easy to check your score on many credit sites. Factors that will determine your score vary in importance. Below are the contributing factors in their order of significance; if there is an issue with an aspect, the higher it is on the list will determine how severely your score is negatively affected - lessening your chances of getting accepted for finance.
Payment History - do you pay your bills on time or regularly miss payments?
Utilisation - the balance-to-limit- ratio across all credit cards in your name.
Credit History Length - how long your account has been open.
Recent Activity - how much credit you have received or applied for.
Overall Capacity - the amount of debt you have currently outstanding.
Upon applying for credit, your score will be calculated with suggested areas for improvement - it is these areas that should be prioritised for improvement as they will better your score and make it both more accessible and more likely that you will be accepted for finance by a lender in the future.
Other factors contributing to the decision of a finance loan
Additional factors that can impact your credit score include medical complications or job losses - such details can be addressed further by a loan officer if sufficient evidence is provided.
A final factor that will be accounted for upon applying for finance is your purchasing patterns:
Short-term debts will be assessed to see if they can be paid off before entering a finance agreement. Finalising these debts should be prioritised as they will be the main negative contribution to your credit score, ultimately preventing lenders from letting you borrow more money.
Upon seeking a credit lender, it is advised that you research different companies as each will have various offers available, and more importantly, other criteria for acceptance. Should one lender reject you, another may be happy to sign you on.
Are you in need of a car but are concerned about your credit?
Atlas Autos has extensive experience as a used car dealer in Manningtree and a motor finance provider - we regard ourselves as specialists within our industry; we would be glad to assist you in getting on the road. We have relationships with credible high street lenders and specialist motoring finance houses - enabling us to have helped hundreds of customers secure the best finance deal for their budget. If you would like to inquire further regarding financing a vehicle, contact us today despite not having excellent credit!