Car finance for bad credit

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A lot of people wonder if they can get car finance for bad credit, these days it doesn’t seem to be such a problem as various companies specialise in car finance for bad credit.

So do not worry if you have a low credit score there is still hope that you will be able to get a car on finance, it just may mean that you will have to pay slightly higher rates than someone who has a good credit score. A company may also ask for a higher deposit if you have a low credit rating.

A low credit score is classed between 300-500, but even with a score as low as this, you should be able to get car finance for bad credit. Lots of car dealerships will be able to offer you various finance packages as will banks or building societies. Just because you have bad credit do not be fobbed off, you should still fight for a good deal just as you would if you had a good credit score.

In general, a good credit score is classed as anything above 680-900, bad credit is 500 and below. But every finance company will probably have their ranges that they will go by, so a simple rule to follow is: If you don’t ask you don’t get, Even if your credit score is low a deal may still be able to be found!

If you go through a car dealership for finance, it does work the same as it would if you had finance through a bank, but by using a car dealership…the car salesperson should do most of the work for you. If you find a salesperson you trust you can leave it in their safe hands to get you a good deal.

There are various companies out there that claim to help improve your credit score but they will of cpurs3e change you for this service so it is sometimes better (if possible) to try and sort things out yourself as it will just become another payment you will have to shell out for. A lot of these companies can only do for you what you can do for yourself for free.

Another thing to be aware of when going for car finance for bad credit is to have it over as short a term as you can afford as possible, usually, a 24 month or 36-month loan is the best option, some companies offer as much as a 72-month car loan, but this is never really a good idea as you still may owe for the car when you go to trade it in. You may end up paying more than the car is worth in the long term.