What should I do if I’ve been refused car finance?

What should I do if I’ve been refused car finance?

Advice and Tips // 25 February 2016

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For many of us, having a car or van is an absolute must – whether it is for work, or because there simply is no other means of suitable transport for us. This results in a scenario where we either get the car on finance, or we purchase it outright – something that many of us cannot afford to do. So what happens if you’ve been refused car finance?

Identify what caused you to be refused

If you have been refused car finance, do not panic. Do not automatically assume you have poor credit, either. There is no one golden number that lenders use. Every lender is different, and what might class you as a ‘risk’ for one lender, might not for another.

Check your credit history

Before approaching another lender, the first thing you should do is check your credit history. You can do this online for free through a number of tools, such as Noddle or Experian. For a full walkthrough of how to check your credit history, you can read our blog post about it.

Take steps to repair your credit history

In the event that you find out you have a less-than-perfect, there are steps you can take to repair your credit history.  

The first is to identify what risk factors are on your credit history. When talking about risk factors, the obvious ones spring to mind – such as CCJs or bankruptcy – but they can also be smaller risk factors.

Obtaining car finance

Even after you follow all the steps to repairing your credit history, this process can take many months, which is not particularly helpful if you need car finance quickly, e.g. to start a new job, or because you’ve recently moved.

If you find yourself in that situation, or one similar, this is where a specialist car finance provider comes in. At Moneybarn, we specialise in providing car finance to poor credit holders. We understand that each situation is different, and that not everyone is the same. You can apply online, or contact a member of our sales team.