Buying a car is extremely exciting, and it is one of the most important purchases we can experience. The most common way of paying for a car is through a car finance package. But all of this can seem beyond you if you have been refused credit previously.
Being refused credit may seem like it is the end of the world, and it most certainly doesn’t feel like you’re going to be offered any car finance packages. However, a good and responsible car finance lender can usually offer you a good package that has integrity attached to it, as well as attractive terms. And this kind of lender can do this even if you have been refused credit previously.
If you approach a car finance offer and you have poor credit history, just be sure to be as clear as possible when you explain your history to the lender. If you miss anything out, this can mean that you will be refused a car loan, and it can waste a lot of time too. If you have had any County Court judgements, for example, against your name in the past, this will most likely rule you out of car finance. And if you don’t make this clear from the outset, you could even find yourself in trouble.
One of the biggest ironies of modern motoring is the fact that younger drivers cannot arrange car finance simply because they have not had an opportunity to build up a credit history yet. This is not even their fault, and is simply down to the fact that they are young. It is no secret that the more you spend on credit, the better your credit history. It is for this reason that young people generally don’t have credit histories.
Advice for younger motorists
Most responsible car finance lenders are able to offer advice to young people regarding credit history. They may ask you to think about building up your credit history carefully, by borrowing small amounts through other platforms and channels. Many young people, for example, may take out a mobile phone contract to build up credit history. A good and responsible lender will suggest such an action so that your credit history can start to be developed. And then they will be able to offer you advice on how they can lend to you, even if you are a young person.
If you have a poor credit history, for whatever reason, it is always worthwhile asking a responsible lender for advice. Most of the time, they can lend it to you as long as you are clear on your history and background. Sometimes with car finance it is all about being clear with the lender from the outset. Most lenders want to lend responsibly, and offer attractive packages. And most of the time, there is a way around a poor credit history. As long as you keep things as simple as possible and use absolute clarity in your approach, having poor credit shouldn’t stop you from acquiring car finance from a professional lender.