Make sure you have your full credit history, by doing this you can re-evaluate how you handle your money and if you need to do anything to improve it and manage your money better. You have to make sure that there’s no mistakes in your credit profile and make sure that’s it’s up to date. Start paying off your current credit as soon as you can.

 

 

Make sure that you register to vote, this is because your prospective lender will run as credit check on you and need your name and address. However, if you’re on the electoral register they can get all your details easier.

 

If you have debts that you are currently in the process of paying off, you need to keep up with these. This will let you new car finance lender that you can handle your money and you can show responsibility for your money. This will also improve your credit score over time. Make sure to set a budget to stick to in order to be able to repay your debts.

 

Your deposit will be around 10% if you have an excellent credit score. If you increase your deposit it will strengthen the deal. It shows the lender that you can afford to pay a bit more and you’ll be able to make repayments on time.

 

If you’re financially linked to an ex-partner who has a bad credit score then this could affect your chances of getting finance because it will be lowering your credit score even more. If you disaffiliate with them, you’re no longer financially linked to them.

 

If you’ve been struggling to secure a loan with poor credit you could ask somebody to act as a guarantor. This means that if at any point you miss or can’t repay a debt, it goes straight to them. With a guarantor, there is a lot less of a risk for the lender, so they’ll be more likely to offer you a fairer interest rate. Your guarantor should be financially stable, this is because if they’re ever in the position that you’ve missed a payment, they need to be able to pay it off for you.

 

There are many different types of loans you can choose from, for example, a hire purchase loan. This loan may be for you because the car is owned by the finance company, so they can take he car away if you miss a payment. Therefore, there is less risk for the dealer, so they’ll be more likely to secure the deal.

The more applications you make, the more your credit score is likely to decrease, so don’t apply for too many loans. Make sure you research your loans before you apply for them.