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by Marsh Finance on Aug 8, 2024 3:11:48 PM
Buying a car means lots of things. One of these is pre-approval. But what is it? How can you get pre-approved? You might not have heard of pre-approval, but we are here to help. Pre-approval is a really important part of the car finance process. Due to this, it's important that you understand what it is. You might have struggled money-wise in the past. If so, knowing about pre-approval is now even more important. Regardless of your circumstances, though, pre-approval is the first big step to your new car.
What Does Pre-Approved Mean In Car Finance?
Think of pre-approval as a traffic light. Pre-approval is the green light letting you go. It’s only an early stage where we look at whether you are worthy of finance. Our early checks will only mean a soft credit check takes place. This is good for you. Soft credit checks don't show on your credit score. We only use this early stage to look at your finances and see how well you handle money.
Is Pre-Approval A Guarantee For A Car Loan?
Being pre-approved doesn’t mean the loan is yours. Based on the information you have given us, we can pre-approve you. This is a good first step to a new car, but further checks are needed. It is, however, a big step in the car finance process.
The Journey From Pre-Approval To Car Loan Approval
Applying for finance only takes 30 seconds and does not impact your credit score. Find out if you're pre-approved today!
Once pre-approved, you’ll speak with our account managers to find the best finance option for you. It’s at this stage that we look deeper into your finances. Only when you choose an option and proceed do we do a hard credit check. Unlike the soft check, a hard check leaves a mark on your file. This can be seen by other lenders and can hurt your chances of finance in future.
How Does A Credit Check Fit Into Car Finance?
A credit check is a key part of the car finance process. It helps us see how you deal with money. This includes how reliable you are to lend to, and how likely you are to make repayments on a loan. Your credit score is a really important part of your application for finance, but it isn't the only one:
We also look at:
All these factors come together to make a decision. We look at as much as possible to make sure you are assessed properly for your loan.
Can You Get Car Finance With Bad Credit?
Yes, even if your credit score isn’t perfect, car finance can still be within reach. At Marsh Finance, we recognise that credit scores can differ. That’s why we offer solutions for those with good, bad, or average scores.
Improving Your Credit Score
Your credit score can change; you hold the keys to make it better. If you are on top of your money and make payments on time, your credit score will improve. We’ve got some handy tips on how to get your credit score in tip-top condition – click here to learn more about how you can improve your credit score.
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Applying For Car Finance With Marsh Finance
Ready to apply for car finance? At Marsh Finance, we make it easy and straightforward. Our 30-second pre-approval process is no-obligation and hassle-free. It’s designed to give you an idea of your eligibility without affecting your credit score.
Finance is subject to status
Takeaway
Understanding pre-approval in car finance is crucial in your path to a new car. Pre-approval is a really good first step, especially if you have a weak credit score. Start your journey today and drive towards your dream car. 🚗💡💳