Bad Credit Car Finance

Here’s a quick example: Let’s say you want to buy a car worth £10,000. You wish to pay a 10% deposit - which is £1,000. Your lender pays the remaining £9,000 for you. You sign a 48-month contract at 8.9% APR. So, your monthly payment will be £222. With the interest, the total amount you end up paying will be £10,730. You pick up the car immediately and use it directly after the deal is finalised. At the end of your contract you pay a small option-to-purchase fee around £200* and own the car outright. *Option-to-purchase fee varies by lender

There is no threshold for when a credit score is considered low, however, different credit reference agencies use a particular band in which they consider a credit score to be particularly low. These include: Equifax - 0 - 438 Experian - 0-720 TransUnion - 0-566 Although your credit score can be low, you can take measures to improve this score. Taking out an affordable car finance deal and making the repayments timely can even help improve your credit score!

If you are looking to finance a car, here are a few tips to help you get the best deal: Shop around: Don't just go with the first or cheap car finance option you come across. Instead, take the time to compare different lenders and guaranteed car finance options to find the one that best fits your needs and budget. Read the fine print: Before signing any car finance contract, carefully review all of the terms and conditions, including interest rates, repayment schedules, and other fees or requirements. It will help you avoid any unpleasant surprises down the road. Keep your payments on time: One of the best ways to improve your credit score is to make all of your loan payments on time. For example, if you're financing a car, stay current on your costs to avoid damaging your credit score. If you follow these tips, you can increase your chances of getting car finance with bad credit. Then, with the proper planning and financial discipline, you can acquire the car you need while minimising the impact on your credit score.

You can always take steps to improve your credit score. Whilst each credit reference agency uses a different system to calculate your score, a few underlying principles can help to fix your credit score quickly: Pay your bills on time Check for mistakes on your credit report Don’t use all your available credit Don’t make lots of applications at the same time Get on the electoral roll If you follow these tips, you can increase your chances of getting car finance with bad credit. Then, with the proper planning and financial discipline, you can acquire the car you need while minimising the impact on your credit score.

If you have bad credit and need to finance a car, Vizion Finance is a great place to start. Here at Vizion Finance, we believe car finance is more than just a new car. It’s a journey to improving everyday life. Whether you need a car for your new job, to carry the kids to school or just to be proud of your achievements, we’ll work with you and our lenders to bring you guaranteed car finance and competitive interest rates and terms, helping you get the car you need or want. We’ll read the fine print for you, and you’ll have a point of contact adviser to guide you through the decision.

Get a free no-obligation quote by filling in our quote form. If you’ll be approved in theory by one of our panel lenders, we will reach out with your offers and explain what you have available. We will be able to answer any questions you may have and we will leave you to find your perfect car (or you might already have one in mind!). You can search our vehicle stock or let us know about a car you have found elsewhere. Use our calculator to find out how much you could afford to repay monthly.