Why Bad Credit Car Finance
The financial record of any person plays a very important role in the consideration of that person’s eligibility in getting any loan. If you have bad credit history especially if you are an IVA holder, CCJ holder or bankrupt, then you will have to pay higher interest rates. One interesting point here is that due to the competitive condition of the credit facility market, you may find some extra advantages if you bargain accordingly. It is very important to pay the installments in time, as any default in payment may result in the lender grabbing your asset.
Getting Online Service
Due to the easy accessibility and convenience, online methods are rapidly growing as a major way of getting car finance bad credit. Because most credit companies have their respective websites with all the necessary details, potential clients could easily analyze the various facilities and comparative advantage of different companies easily. They can get their desired credits instantly and apply for such facilities in a faster way. Though the Frequently Asked Questions section provides the basic information, most of these companies also employ customer care representatives to answer the specific queries of their potential and existing clients.
Advantage Provided By The New Companies
New companies for providing credit facility for the people with bad credit history are increasing rapidly. Due to the fierce competition between them, clients could get credits on easier terms. Therefore, they will not have to limit their target to only old or high mileage cars; instead, they can buy newer models with the extended credit. It is also attractive because clients could get their credits as soon as 24 hours. The credit companies usually use the car itself as the collateral. The lending company will possess the necessary papers until the debtor pays the amount back.
Despite having a bad credit history, some companies let their clients enjoy lower interest rates as they keep the car as the security deposit. However, debtors should make it clear that they will not have to pay more than 30% of their annual income as loan payment. It makes the lenders cautious about any installment that is more than 30% of the debtor’s income. You should ensure that you pay the installments timely. You could actually use the credit to improve your bad credit history. Along with reducing your credit, this will also help you in improving your credit scores.