If you have a less than perfect credit history, you may be thinking that getting car credit is going to be virtually impossible, but think again, because these days, a past poor credit history is no longer a problem; even if you have had CCJs or other financial problems, poor credit car loans are now widely available. Lenders will look at your credit report to determine:
- How much they are prepared to lend you
- Over what time period
- At what interest rate
So if you have bad credit, you are likely to have to pay a higher rate of interest and may have other restrictions including penalties for early repayments – this is because the lender is taking a higher risk than with someone with a good credit history – but it does not mean you will be refused credit.
If you have poor credit but own your own home, this will work in your favour because the lender can use the home as security. Our poor credit car loans comparison tool allows you to look at all the leading deals on the market so you can find the right one for you.