Bad credit car finance, Bad credit car loans – how it works? Being declined can be embarrassing so make sure you take into consideration our 5 tips to increase your chances before you do anything else!
1. Look at your outgoings
It seems pretty obvious but make sure you pay all your outgoings on time! Any missed payments can harm your credit score. But it’s also worth looking at how many outgoings you have and what they total up to. If you have millions in the bank, it doesn’t count for anything if your outgoings total up to billions. Keeping your outgoings low is a great way to show credit checkers that you’re good with money and can easily increase your score.
2. Calculate your loan BEFORE you apply
Did you know you can check your chances of approval even before you apply? Thanks to the car loan calculator from UK Car Finance, you can get a good idea of the finance deal you would be offered without harming your credit score! Unlike many other finance companies, their ‘soft search’ let’s you apply without harming your credit score!
3. Are you on the Electoral Roll?
If not, why not? Even if you don’t want to vote, signing yourself up to the Electoral Roll is a simple and fast way to increase your chance of approval for car finance. Most loan providers use the information to check who you say you are.
4. Have all your documents ready
Usually, lenders want to see some documentation to verify you are who you say you are when applying for car finance. So, make sure you’re ahead of the game and speed up your application by having your documentation in order. You may need to consider making sure you have to hand a valid UK passport, full UK Driving Licence, 3 month utility bill or bank statement for example.
5. When it comes to affordability, be realistic!
You’d be surprised how many applications get denied because of affordability concerns. You should be realistic about what you can and can’t afford. If you’re not really sure what your monthly budget can get, UK Car Finance allow you to browse real cars in stock by their monthly budget.
