It can be a tough time looking for finance options to purchase a vehicle, even more so when you have bad credit. Many lenders may overlook you as an applicant if your credit rating is not in a good place. The good news is, not all hope is lost as there are lenders out there that are willing to help you – it’s just a matter of knowing where to look. Here are 3 of the best ways to find a car loan lender when you have bad credit to enhance your chances of approval.
Find the Right Lenders
Amongst the vast amount of car loan lenders, you’ll need to first ensure you find the right ones to help with your specific circumstances. If you have bad credit, you may have already found your options are limited, so you need to seek out specialists of bad credit car loans online who are in a position to help. They will specifically be able to provide finance options on a car that are affordable to you and not decline you based solely on your low credit score. This is a much better use of your time when searching for lenders as you can avoid applying for car loans you are not eligible for, reducing the amount of declined applications that will impact your credit rating further. Being smarter with the lenders you apply for will provide a much more positive outcome.
Make Sure You Can Prove Your Affordability
If you have bad credit, you are going to have to make sure that this isn’t a bigger financial issue. If you do not have the affordability, you could potentially make your situation worse. That’s why before approaching a bad credit car lender, you need to ensure you can afford the repayments. If you can’t see yourself that your income and outgoings leave enough disposable income to cover the loan, the lender will have a hard time doing so too. Many bad credit lenders will want to see your most recent bank statements to determine what you can afford to pay. If the lender can see you can afford it without causing issue to your essential bills, your chances of being approved are higher.
Have Your Supporting Documents Ready
Similar to many types of lending, you’ll need to provide supporting documents as part of an application for car finance. This is no different with bad credit car lenders as they will still need to run a credit check of your finances. It’s a good idea to have these ready before you apply, as this will save from any delay with a decision. Most lenders will need to see photo ID such as your passport or driving licence, as well as proof of address from a utility bill or bank statement. If you do not have either of these, a bad credit lender may have to decline you, so make sure you have them before clicking apply. Make sure the documents are valid and not expired also, and that you have a full UK driving licence, not just a provisional one.
The above tips will ensure you are in a good position to purchase a car with finance when you have bad credit. It won’t guarantee success but will enhance your chances of being approved rather than declined.