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Tips For Car Finance With A Poor Credit Score
20 March 2022

Tips For Car Finance With A Poor Credit Score

If you need a new car but you have a bad credit score, this can make gaining approval for a car finance agreement more challenging, but not impossible! While there’s no such thing as guaranteed car finance, there are credit lenders who specialise in helping those with poor credit, so you still have options.

A bad credit score can result from a wider variety of factors, including missed credit card payments, rent arrears, bankruptcy, County Court Judgements (CCJs) and having no previous loans. There could be a number of reasons for these factors occurring and while many finance providers will decline your application, others may not consider you to be such a high-risk borrower, so even if you have been rejected by one provider, it could still be worth trying elsewhere.


Before you apply, try the following tips to improve your chances of being approved for car finance with a poor credit score!

Check your credit score before applying

It is best not to assume that you have bad credit without checking, because you may be able to get a better deal than you think. There are credit-checking agencies that will give you a rating based on a soft search, which won’t show up when other companies conduct a search. This won’t tell you if you will be approved or declined for finance, but it should give you an indication of the outcome which may help you decide where to apply.    


Improve your credit score

If you have some time before you apply, it could be worth trying to improve your credit score. There are some simple things that you can do, like registering on the electoral roll and getting a credit card. Use your credit card to buy things that you know you’ll be able to pay back so that you can build up your credit rating.


Increase your deposit

The bigger the loan, the higher the risk for the lender. If you increase the size of your deposit as much as possible, you won’t need to borrow as much and finance providers will be more likely to approve your application. 


Don’t make an excessive number of applications

If you make lots of applications, this will appear on your file when lenders check your credit history and seeing that you have applied and been declined for finance multiple times does not look great. 


Find a bad credit car finance broker

If you apply directly to a lender, you will lower your chances of being approved, and if you are successful, you will only receive one quote. At the same time, we’ve already established that it’s not a good idea to apply to too many lenders. That’s where brokers come in handy, allowing you to submit an application to multiple providers at once and compare a range of quotes! At Autozone/Car Credit Now, we work with a varied panel of lenders, some of whom specialise in poor credit and offer high approval rates. When you apply for used car finance in Barnsley with us, our team will match you with the most suitable lender to give you the best chance of having your application accepted. 


Use a guarantor

A guarantor is someone who agrees to cover the cost of missed payments on behalf of the borrower. This will provide lenders with additional reassurance.

Apply for bad credit car finance in Barnsley with Autozone/Car Credit Now online today!