Advice and Tips

Is it possible to get a car loan with poor credit?

Advice and Tips // 25 February 2016

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In many parts of the country, as well as in many lines of work, having a car, van or truck is a necessity. For many of us, unless we’ve saved enough to buy the car outright, this means getting finance. 

Having poor credit doesn’t mean that you can’t get finance for a car or that you will be charged sky high rates. It doesn’t mean that you’ll have to pay through the nose on your monthly repayments either. It is possible to have poor credit and still get a reasonable car finance plan.

What is poor credit?

It’s important to realise that ‘poor credit’ may mean different things to different lenders. For example, if you have a borderline ‘poor’ credit score, some lenders will see this as a sign of improvement, whereas others might see it as a risky prospect.

Credit ratings are affected by a variety of factors – but it’s best to try and understand what these factors are before you start applying for a car loan, so that you can better understand the outcome. For an in-depth view of what affects your credit score, you can visit the Experian site.

Obtaining a car loan

If you do have poor credit, there is no need to get down. In the wake of the credit crunch, many lenders have established themselves that specialise in providing finance to poor credit holders – such as us!

You should be aware that this does mean that the APR rates will be slightly higher than if you had a good credit history.  Using a car finance calculator is a great way to find out what you could potentially borrow and how much it will cost you to pay it back. You’ll be able to easily see the monthly repayments, as well as the length of repayment term, and the final amount that you’ll be required to pay back.

If you’re worried about the process, remember that you can always talk to a member of our sales team, who will be more than happy to walk you through it.