How to get car finance with bad credit? 

Dreaming of a new car but unsure how you’re going to get a car loan because you have bad credit? 

Unfortunately, poor credit can impact your chances of obtaining car finance and it can even make it difficult to find favourable loan terms.

So, can I get finance with bad credit? 

Yes, it is possible. A challenging credit history doesn’t need to derail your dreams. With strategic planning and informed decisions, you may still be able to get car finance with bad credit and drive off in the car you’ve been dreaming of.

Credit repair with Fix My Credit

Working with a credit repair company like Fix My Credit allows you to gain a better understanding of your credit history and even secure the finance you want. 

Let’s look at what Fix My Credit can do to help:

Assess your credit report: In an initial (free) phone consultation, we’ll determine if we can help. If we can, we’ll obtain a copy of your credit report. This will help us understand the factors that have contributed to your bad credit. By identifying what caused these issues we can set a path to repair your credit. 

Credit repair: Before you can apply for car finance, we need to look at credit repair. The Fix My Credit team will work to address any outstanding debts, and court judgements and dispute inaccuracies on your credit report to develop a plan to improve your credit score over time.

Other options: 

There are also a few steps you can take to increase your chances of securing a car loan when you have bad credit:

Reevaluate your budget

We know you might have a certain car or model in mind, but to help support your credit repair journey, it’s important to have a realistic budget for your car. This needs to incorporate the monthly loan repayments as well as insurance, maintenance and any other unexpected expenses. 

Save for a bigger deposit

Saving for a more substantial down payment can benefit your loan application. A larger down payment not only reduces the amount you need to borrow but also reflects positively on your commitment to responsible financial management.

Guarantor loans

Consider involving a guarantor with a stronger credit history to co-sign the loan. This provides additional security for the lender, increasing the likelihood of approval and potentially improving the loan terms.

Secured loans

Opt for a secured car loan where the vehicle itself serves as collateral. This reduces the risk for the lender, making them more willing to approve the loan despite your bad credit. However, keep in mind that defaulting on payments could result in the repossession of the vehicle.

Research lenders thoroughly

Unfortunately, some borrowers may be taken advantage of by finance companies offering credit to individuals with bad credit. Often, the interest rates are higher, and the terms may be less favourable. Comparing their offerings and understanding the terms and conditions will empower you to make an informed choice.

Let Fix My Credit help you with your car finance

Securing car finance while actively engaged in credit repair is possible. With Fix My Credit you may successfully navigate the road to improve your credit and drive away with the car you want. 

Take the first step and contact us today for a free credit health check.