With the cost of a new car slowly increasing, there have been several financing options made available to lower this cost and provide people with the opportunity to drive new and used cars. But what about those with poor credit? In this article, we will be providing you with insight into whether bad credit finance is the right decision for you, and how you can go about ensuring you take it out safely.

Understanding Car Finance 

For those that have been on the market for a new car for a while, you’ll know that buying a car outright is an expensive process. Whether you are looking for a family car or a little run around for the city, purchasing a car on finance can be the ideal way of gaining access to a car when you don’t have the money to purchase it outright. 

With several different finance options for you to choose from, in a lot of cases you can gain access to a car regardless of your current financial situation. The exact agreement will vary between lenders, with some giving you more freedom and control over what you do with the car than others, so it’s important to carefully read over the terms before you agree to anything. Before applying for any form of finance, it is important to look at your options to ensure that you get the best possible outcome when looking to finance a car. 

Can You Apply with a Poor Credit Score? 

Whether you are new to finance and have no credit score or you have a poor financial credit history due to outstanding debts, there are still finance companies out there who are happy to lend and allow you access to a car with poor credit. Though  most lenders will still take your credit score into account, there  are some that will look at your monthly income and outgoings to determine whether you can afford this. If this sounds appealing to you, look for a dealer who makes their decisions based on ‘affordability’, Though it can take time, this will enable you to gain access to a new or used car for affordable monthly repayments.

How Can It Impact Your Credit Score? 

Your credit score can have a huge impact on your options for financing a car, and you may not be eligible for as many deals if you have a low score to begin with. However, a car finance agreement does have the possibility to positively impact your credit score – if you make all the repayments in full and on time. By taking advantage of bad credit finance when looking to finance a car, this can provide you with monthly repayments that work with your current financial situation. By finding the right car finance option for you, you could even be met with the opportunity to better your credit score. Though this is not the sole reason for financing a car, it can be an extra bonus. 

Is It Applicable to First Time Drivers?

First-time drivers are often met with several challenges when it comes to purchasing a brand-new car. But with several finance options for first-time drivers to choose from as well as certain deals for those looking to purchase their first car. Financing is a great way of getting on the road without spending a small fortune up front. Whether you choose a contract that allows you to keep the car, or one where you give it back at the end of the term, a finance package may benefit you in the long term. 

Whether you are looking to purchase a car in the near future or your current contract is up for renewal, there are several options out there for you to aid you in getting your dream car.