Car with bad credit rating
If you are reading this post it may well be that you have asked yourself the question
Can i get a car with bad credit rating?
Well welcome to the home of Non Prime car funding in the UK because here at MSG Cars we specialise in securing approval for our customers on a variety of financial products that result in them being able to drive the car of their choice even if they have already been refused credit elsewhere. To get a car with bad credit rating will mean completing an application form with us and providing us with additional supporting information such as proof of income, passport and drivers licence. The three main areas that customers of ours come to us regarding are car loans, car finance and contract hire which essentially are all very similar in the fact that the monthly repayment is related to the cost of the actual vehicle. There has been a lot of press coverage on the credit access problems in the UK in recent years and this has lead to considerable difficulty in many obtaining the funds they require. With a car purchase being only second to a house in importance and size of value its no surprise that this can be a great concern to those unable to get approved for a new vehicle for reasons relating to bad credit.
What causes a bad credit rating?
A credit file is a record of each individual finance agreement that a person has taken out – usually over a 6 year period. This allows a potential lender to access your details and see every single snippet of information available for you and make a lending decision against a set criteria that they have. The cheaper the finance or lower the rate then the stricter the amount of bad credit you are allowed – i.e. None! What a typical credit file will show will be the last 12 months activity on a particular file so for example an active credit card will show if you have made a repayment on time and give you a snap shot of 12 payments. Any missed or late payments will be highlighted so the underwriter of the finance company looking at your case will be able to see straight away if you are the type to miss payments. What also happens with many of our Non Prime customers is that for what ever reason they will usually have gone through a period where they have been unable to make their commitments and so if they have a loan that they missed several payments on – the lender involved may decide to issue a default notice. The default means the signed finance agreement has been broken and so no longer valid leaving a black mark on the file. With the specialist sub prime lenders they will not judge you as harshly for these issues and look at your case as a whole as opposed to something that could even have occurred 3 or 4 years previous. People tend to panic when a credit check is mentioned but this is relevant to the type of finance being applied for and bad credit car finance is quite different.
Does a credit check get carried out?
Yes. With any finance agreement the company doing the lending obviously need to ensure that the person is whom they say they are as it wouldn’t make good business sense to lend to a high risk customer without confirming there address and identity. They are many factors a credit search is used in looking at these Non prime cases and one of the main ones is to check a persons traceability using systems such as the voters roll trace. If a person shows at their given addresses on the voters roll it looks better in the eyes of the underwriter than if they have very little trace. If for example someone has only just gone on the register and has large gaps the question being asked will always be – has the applicant gone on just to get finance? Other reasons why this is a necessity is to check if the customer has a history of defaulting on car finance plans as this is a good indicator as to weather they are likely to do it again. Would you consider lending £15,000 for example to someone whom has 2 or 3 previous failed car plans? Any car with bad credit rating plan will be assessed on the sum of its parts and wont get declined just because of previous bad credit. Please remember that this is what we do and so would not waste our time if we couldn’t get clients placed and into new cars!
