A bad credit car finance is something that has been around since the dawn of the first car loan. Back in those days, there was no option to borrow against your future salary through a scheme like Personal Contract Hire or Personal Contract Purchase – it just wasn’t possible. The only way you could get yourself behind the wheel of a new set of wheels is if you saved up enough money to pay for it all at once, and even then, your lender might not approve you for quite as much as you were. This meant that anyone with weak credit history would struggle to find anywhere that would lend them money, which left many high and dry without any means of purchasing their dream car (or one that simply worked well enough). That’s where bad credit car finance comes into play.
Bad Credit Car Finance – the Risks Involved
While it’s true that getting bad credit car finance can be of massive benefit, especially for those who do not have the ability to save up enough money to buy their vehicle outright, there are some risks involved. The major one is that you’ll usually find yourself paying an increased APR due to your poor credit score. This means you could end up locked into a much more expensive repayment plan than if you’d been able to get approved for standard car finance at all! But the benefits far outweigh these potential drawbacks. After all, what’s better – not being able to afford your dream set of wheels or taking a bit more debt now in order to have it for years to come?
Bad Credit Car Finance – How Can I Get One?
Just because you’ve got a bad credit rating, it doesn’t mean that your dreams of having your own set of wheels are at an end. There are still plenty of lenders out there who will be willing to give you the money to buy a car or van; all you need is some time and patience, combined with knowledge about how best to approach them.
Bad Credit Car Finance – The Benefits
By opting for a bad credit car finance agreement rather than saving up to buy your vehicle in cash, you stand to gain some massive benefits. Firstly, there’s the fact that all of the effort and hassle involved with having to save up enough money is removed from the equation; it’s taken care of by your lender and put on their balance sheet instead (no pressure on your end). Plus, if something goes wrong with this agreement (such as losing your job), then it’ll often be easier for you to switch lenders and keep going, rather than having to wait until you’ve got enough money saved up.
