Bad Credit Car Finance - soft search

When you are looking to decide what your next car will be, and what finance plan would be most appropriate for the vehicle, an important factor that will impact the decision will be your credit score. Indeed, your credit score goes a long way towards deciding what cars you may or may not be able to consider purchasing, which we will now explain in more detail.

Your credit score itself will be impacted by your financial circumstances, ranging from your employment to your spending history. A good credit score means that you are in control of your finances, and that you could be trusted to successfully make regular payments on the likes of a mortgage or indeed a car. A bad credit score means that you may have had difficulties with keeping up payments in the past, or it could be that you have recently fallen on hard times with regards to your bank balance, which from a financial standpoint could make it difficult for you to be trusted to enter long-term agreements in the near future.

So, how does your credit score affect car finance? Well, a good credit score will generally reflect your current monthly earnings, and as you might expect, the more money that you are making, the greater the range will be of cars that you could potentially purchase. You may not wish to overindulge and buy the most expensive vehicle on the market, but you will be able to consider the vast majority of cars available. This makes for an easier process when it comes to determining a suitable car finance plan since the confidence will be there that you’ll have no problem making the monthly payments, which will still be fair to you and your own circumstances.

If you happen to have a bad credit score, though, then this will reduce the range of vehicles that you will be able to consider. Not only that, but the terms and conditions of the finance plan would have to be carefully worked out so that the agreement won’t place an additional monetary burden upon you, as well as being fair to the dealer in the event that any monthly payments fall behind, especially if this becomes a regular occurrence. In this case, they might want to install black box or trackers so that they can be in control of their asset just in case you default payments. That being said, some people will have a bad credit score due to extenuating factors which they have had no contribution to, and we will always communicate closely with our customers to ensure that we understand your circumstances completely. You’ll never be turned away just because you have a bad credit score, and having a bad credit score certainly does not mean that you will not be able to purchase a car of sufficient quality.

Of course, your credit score will change over time; it could be that you land a new job which turns your rating from negative to positive, so a few years down the line, you might have access to the vehicle that you wish you were able to afford right now. Conversely, a financial setback could place restraints upon you that were not previously there. In any event, it always helps to keep us informed of your situation as time goes on, not only for the benefit of an existing plan but also to present us with the factors that could be considered when the time comes to initiate an agreement for your next vehicle.

Find out more about your credit score and play around with our hand finance calculator to find some great cars finance deals. Over 95% of our stock can be acquired on a no deposit finance deal with unbeatable low rates. Want to know more? Call us on 01925 599079.

As part of our services we deliver the car to your premises of choice within the UK. Lately we have delivered cars in most major towns including the Southern cities & midlands: (LondonBirminghamLeicester), Northern cities (ManchesterLiverpoolSheffieldLeedsNewcastle), and Scottish cities (EdinburghGlasgow).