Its a question that our customers tend to bring into a conversation many times during the course of an application and that is how is it possible for someone to get car finance with bad credit showing on their credit report? Its typically a catch twenty two situation in that an applicant has some previous bad debt or credit issues and so how can they get a lender to look past this and consider approving the deal. With high street lenders such as banks, car finance companies, dealerships and car lease providers they will normally have had a computer model system custom built for them by one of the major credit agencies and can tell in an instant if they can approve you. With these "prime" finance deals there is no flexibility and they will all write into the program to decline any candidates who show adverse info over the last few years and in some cases upto 6! A lender considering a proposal has to look at the potential risk for the company getting a return on its investment and so going to one of these companies when you have poor credit is only going to end one way - a decline. What you need is to ensure that your application isn't wasted and that it will be submitted to a lender that is a specialist in looking outside the box compared to the mainstream and so can take into account your issues. A Car finance with bad credit lender is going to view many different factors when underwriting your case and so even in this day and age with its scarcity of credit you have a great chance of success.
At MSG Cars for example they work with several of these types of finance houses who fortunately for those having trouble getting accepted still operate in the Non Prime finance sector. A typical application can still be approved given the right set of conditions and so even issues like being on a debt management plan for instance wont necessarily cause you to be turned away providing you can satisfy some other aspects. With the bad credit car finance market you will normally be required to pay a minimum deposit that equates to 4 months payments in advance and will also need to be someone that shows a traceability in the UK. Being traced means that you are seen to be a real person and may show on something like the UK voters roll or if you own a property - the land registry search. The type of person that is invisible to these checks will more than likely give the lender the indication that this is for a good reason - usually avoiding previous credit debts.A common sense approach is taken when underwriting a Non status or non prime car finance deal so the whole picture will be looked at. Someone with a good income, stable job and who is a homeowner but has a few months mortgage arrears would be a typical customer who gets a quick approval as despite some problems showing on their file hat would set alarm bells ringing if using normal funding would be readily welcomed with a bad credit lender. The price paid doesn't need to be hugely excessive either as there are several levels of approval available with three differing rates depending on the severity of the previous credit issues. On one end of the scale you would perhaps get a person who is just late when repaying their monthly credit card bill and so has seen their credit score decline below the prime credit threshold. At the opposite end we would see someone who has been in a bankruptcy or currently on a IVA for defaulted credit. This would be expected to be higher risk and so pay slightly more than others. Because car finance with bad credit is like a car loan the amount paid each month relates to the amount borrowed and so the better the price of the car is the better value for money the customer gets.
For further information on a Non status approach using car finance with bad credit products please contact MSG Cars at http://www.msg-nonstatuscontracthire.co.uk/
