Worried You Won’t Be Accepted for Car Finance?

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It's a genuine concern for many. Your current financial circumstances or credit history may affect your ability to buy a car, so your first thought when you need one is, “will I be accepted for car finance?”

Each lender has different criteria that they use to figure out who they should lend to. What one lender wants from a borrower could be different to another.

This makes knowing whether you will be accepted for car finance a bit tricky.

There are many different reasons why a lender might decline you for finance. Read on to find out what they are and how you can overcome them.

Bad Credit History

A bad credit history is one where you’ve not paid bills, credit cards, loans or even phone bills on time. Lenders look at your history to predict how you’ll behave in the future.

Check your credit score through credit reference agencies to make sure it’s correct. Take note of your credit score itself – it allows you to judge whether you’ll be approved for car finance, and what kind of interest rate you might be offered.

There are however, a number of lenders on the motorfinance 4u panel   that will lend to you even with a bad credit history.

Take a look at our guide on how to get car finance with bad credit for more information on how to improve your credit score. 

No Credit History

If you’re young, then you may not have much of a credit score at all, which some lenders are wary of. It’s hard for lenders to predict your behaviour if they don’t have any historical data to base a decision on.

This seems like a bit of a catch 22 (can’t get credit but need a credit history to get credit), but you just need the right lenders. A guarantor loan, for instance, is perfect for young people with no credit history. Because the lenders can see the guarantor’s past credit history, they’re not going in blind.

Income

If your credit rating is perfect, then you may be surprised when you’re rejected for credit. This could be because the lender thinks that your budget cannot cope with paying for day-to-day living costs and make the loan repayments as well.

We work with a panel anxieof responsible lenders , which means they  make sure that you can afford to borrow money before they lend to you.

Lenders like stability. So if you’re self-employed and your income is different from month to month, then you might struggle to get approved for finance.

Because we work with various car finance companies, you’ve got a greater chance of arranging car finance when you apply through us. Many of those companies are sympathetic to your cause if you’re self-employed.  

No Deposit

All the advice tells you to save up as big a deposit as you can for the best deal. But what if you don’t have time to save up a deposit? What if saving is tricky for you? Are you to go without a car?

Don’t worry, because many of our lenders are able to offer car finance without a deposit.