Car Finance Needn’t Be A Problem With Bad Credit

Updated 11 September 2024 | Originally Published 23 December 2018

It can be tough to find car finance or leasing services if your credit isn’t in the best of shape. In today’s choppy financial waters, it’s easy for even the most conscientious borrower to find themselves falling behind or being a little late with the occasional payment, damaging their credit scores. Younger drivers who haven’t had a chance to establish a solid credit history can also find themselves in trouble. What can you do to overcome this obstacle when you need a vehicle?

Credit Repair

In the medium to long term, repairing your credit is a good goal to work towards.

You can do this yourself by ordering your credit report from a credit scoring agency and going through any negative strikes against you.

When you find errors or negative comments that you think your creditors might be willing to remove, you can contact those involved to have the strike removed. Unfortunately, this is tedious, time-consuming, and may not always get your credit score back to where you want it to be. You can hire a credit repair agency to do the same thing, but this too will take time. What can you do if you need a vehicle right away?

Specialist Bad Credit Car Finance Services

A specialist car finance and leasing company can help you with your situation. These are organisations that understand the hows and whys of bad credit and won’t simply dismiss you out of hand.

A bad credit car finance company [like Compass Vehicle Services] will work with you to give you a rate that offsets any risk on their part while still being fair and affordable for you. Because they’re specialists in working with people who have problem credit, this kind of organisation can help get you back on the road at a reasonable rate.

Budgeting and Co-Signers

Setting a realistic budget is crucial. It ensures that your car payments are manageable and that you don’t risk further financial strain. When deciding on a vehicle, consider the total cost of ownership, including insurance, maintenance, and fuel.

If possible, consider finding a co-signer with good credit. This can sometimes help you secure better financing terms, potentially lowering your interest rate and making your payments more affordable.

Compare Offers

It’s important to shop around. Different finance companies may offer varying terms, so comparing offers can help you find the best deal. Pay attention to the interest rates, loan terms, and any additional fees.

A specialist car finance service can even be helpful in rebuilding your credit, as paying off your car can count towards your credit score. A new vehicle and a better credit rating may be just a step away.