Owning a car has become a basic necessity for most people in UK. In most cases, individuals have to depend on car finance for purchasing a car since it is a major purchase and one which involves a lot of money.However, finding car finance and loan options can be a little tough for bad credit borrowers.
If you have been thinking about purchasing a new car or even leasing one, then there will be several dealers and loan companies that would not be willing to offer you a loan because of your bad credit history.
Car finance bad credit history are specific finance products that have been designed for bad credit borrowers and these would be the best possible option if your credit history is not really perfect.
Finding finance deals when you have bad credit history
Finding car finance bad credit history deals will require some time and effort and so you will have to be more patient than usual. You will have to approach sub prime car leasing or finance companies rather than approaching the standard high street finance companies in UK. Some of the online finance companies like ACF Car Finance, Sub Prime Car Leasing, Lease 2 U, e-ContractHire are all car finance companies that cater to bad credit borrowers.
These loan companies offer car finance bad credit history products. No credit checks would be conducted by these loan companies which mean that you will be able to qualify for the product even with CCJs, IVAs, arrears and late payment fees in your credit history.
The standard loan products are not really available to bad credit borrowers since for standard finance deals, a credit check is a basic necessity. When the loan company would conduct a credit check, they would learn about the applicant’s credit problems in the past and would be unwilling to offer a loan.
For this reason, it is important to contact lenders that specifically offer car finance bad credit history. Even though most people are a little hesitant about contact sub prime lenders, they can offer good finance options.
Expect your interest rates to be slightly higher than the standard car finance products when you apply for car finance bad credit history. In order to get a good deal on the loan, you may even want to get in touch with some of the online specialized motoring companies that specialize in offering good choices in car finance to their clients.