Whether you’re trading in your old car or buying your first used car in Liverpool, unless you’re a cash buyer, you’ll need some form of credit. If you know that your credit rating isn’t good, is nonexistent or you’re just too afraid to look, there are lots of things you can do to help you to get access to the funds you need.

Whatever your history, we know that bad debt acquired in the past doesn’t mean that you can’t afford to pay for a car today. Sadly, when considering your application for credit, finance providers will look not only at your current financial situation but also at your track record as an indication of your ability to pay.

Don’t Panic

While the most common forms of car finance used today - PCP and HP - are not usually accessible to those with a poor credit rating, other options are available.

Each credit company will judge your eligibility under different criteria - payment history, income, job security, length of time at current address, significant others, additional credit obligations, etc - so just because you have been denied finance from one company, doesn’t mean that you will be rejected from them all.

In fact, Motor Range is delighted to be able to use the services of a range of trusted and reputable finance providers, including Marsh Finance Ltd, which prides itself on being able to successfully finance cars for drivers who have had problems securing funding in the past. 

However, as many lenders share their information, numerous rejections are among the list of things that will count against you during credit qualification. If you make application after application in search of the right deal for you, you risk being ‘blacklisted’ by several finance providers even before you have approached them.

Let Motor Range guide you through the application process. We can help you avoid some of the pitfalls enabling you to to drive away in your ideal car with an affordable payment plan in place.

Start With The Basics

There are several things that you can do to boost your chances of being accepted for a  car loan before you start shopping around:

  • Check your credit rating. Things might not be as bad as you think, and even if they are you can do a number of things to improve your credit file. Get a look at your full credit report for free by signing up to a trial from a monitoring service, such as Experian (remembering to cancel before the end of the trial period).
  • Ensure you’re up to date. Something as simple as an old phone number, wrong address or job title that you’ve forgotten to update can affect your rating. This information should be kept consistent through all of your applications as well as on the electoral roll to help lenders minimise fraud.
  • Check also that any negative entries on your credit rating are correct. You will be able to appeal if you notice an unjust ruling. Speak to the creditor involved, providing proof that their information is incorrect, e.g. a bank statement showing payment of an alleged late installment or an order for goods that were never received, to get the decision reversed.
  • Know where you stand. If you are aware of legitimate County Court Judgments or bankruptcy filings against you, hold off until they expire (usually 6 years) before making a credit application. A rejected request for credit will remain on your file for a year, lowering your credit rating accordingly for that period. Also avoid payday loans and credit card cash advances which lenders also view as bad money management.
  • Make your own history. If you have no credit rating because you haven’t used a credit facility before, build your own rating by obtaining a credit card and repaying the full balance every month. With a low credit rating, the only cards you’ll be eligible for will have high interest rates which you won’t need to worry about if you are paying them off every month. Remember, don’t be late on repayments or you’ll be back to square one.

Tread Softly

Once you’re confidently up to date on your finances, decide how much you can sensibly afford to spend each month on your car by weighing up your outgoings against your income. Armed with this fact, you can start to make enquiries as to your eligibility for specific loans.

Unlike actual applications, these ‘soft’ searches won’t be registered on your credit file and therefore can’t be seen by lenders whose decision might be swayed by them. Although they aren’t firm acceptances, you will get a fair idea of who will take you on as a borrower and the rates that they would charge.

Help Is At Hand

If you can do nothing to improve your credit rating, there are particular creditors, such as Marsh FInance Ltd, who will still consider those who are having difficulties securing a loan, usually charging a high interest rate.

Alternatively, find a family member or good friend with a decent credit rating who can act as a guarantor, providing security on your loan. They will be liable for your default so ensure that you only use this option if you are confident that you will meet all repayments.

If you are looking for ways to pay for your next car, whether you have a good or bad credit rating, call Motor Range on 0151 601 1827  or pop in to see us for some advice. We can provide a confidential and secure quote within hours, with no commitment to buy.