Sometimes in life it is necessary to face some harsh facts. One such fact is that if you have a poor credit history, then you’re probably going to find it harder to obtain a loan for a car than many other people. The good news is that this needn’t be the end of the story because there are possibilities to secure finance for vehicles through what are called ‘poor credit car loans’.
At the outset, it is important to realise that you are going to need to be realistic. Whatever the current national economic position, any finance company or bank is going to look at your credit history as part of your loan application process. If they see multiple missed payments, loan defaults, CCJs and other such things on your file, then they will see you as a higher risk for a loan than someone with a good credit history.
It’s worth noting that the finance companies are not making any judgements about your character, as they may well not have any information about the circumstances that led to your history of problems. They will not be saying you were to blame or that you are untrustworthy. Many people today have credit glitches on their files and there is no stigma attached.
However, the finance company does have to account for its loan decisions to its owners or shareholders and they understandably must be cautious.
If they do see credit history problems, finance companies will usually go one of three ways depending upon their business strategies and to some extent, their view of the world:
- Some will say ‘no’ – simply because it is the easiest thing for them to do
- Some will say ‘yes’ – but subsequently hugely inflate their interest and other charges. This is partly because of the higher risk they’re taking and partly because some see poor credit history as an opportunity to increase their profit margins
- Some will say ‘yes’ – then try to find the best possible deal they can for the applicant recognising that anyone can suffer bad luck and should not be penalised for it.
If you were looking for poor credit car loans, you will obviously want to find a reputable car finance company in the third category. There are specialist car sales and finance organisations that offer facilities to help people with problem credit histories. They will have expertise in the area and arrangements with finance companies that they know will be more sympathetic to certain categories of poor credit history customers.
You can have a look for them on the Internet and check out their products and offerings. It’ll cost you nothing. If you like what you see you could give them a call for advice and guidance. Once again, it isn’t costing you a penny and could result in you finding the loan and car you desperately need.
If you’re looking for poor credit car loans you will need to keep in mind that even with expert help and guidance you will most likely not be able to get the same rates as someone with an exemplary credit history. You may also have to provide some form of security against the loan in some cases. There is however no reason for you to be ripped-off either, so choosing the right professional car finance company will be important.