When it comes to applying for car finance, your credit score is important. A credit score is a number given to you based on how well you handle finances and meet repayments, amongst other things. Your credit score will impact whether you get car finance. If approved, it will then affect the rates you are offered. Knowing if you have a good or bad credit score is key. You might be wondering; how do I find out my credit score? Visit one of the websites below for a quick and easy credit check:
Let’s break down credit scores. The higher the score, the better your credit is. A better credit score increases your chances of finance, as well as getting good terms on the deal. A lower score will have the opposite effect. If you are wondering what a good score looks like, it will usually be upwards of 600, depending on who you use to get your score. In most cases, a 500 credit score is not bad, and is likely to be considered to be a fair score. A bad credit score is one that falls below the 350 mark. If you find yourself in this position, you can assume your credit is poor. This isn’t the end of the world though! Even with a bad credit score, you can still get car finance.
As we have mentioned, having bad credit will impact whether you will be accepted for car finance. If you have bad credit, you can still be approved, but the APR and interest rates might be high.
Getting car finance a low interest rate when you have bad credit is tricky. If you are looking for finance with bad credit, be prepared to pay a fair bit more than the car is worth over your term. The important thing to remember, though, is that car finance with bad credit is possible.
Hard credit checks can impact your credit score, and if you already have bad credit, this won’t help. Hard credit searches can happen when you apply for a loan, credit card, or car finance.
It’s a good idea to try and avoid a hard credit check until you are ready to sign the contract, especially if your credit is poor. Some companies, like us, allow you to check if you’re pre-approved without impacting your credit score.
Having bad credit can make you feel hopeless, especially when it comes to knowing what finance you can get.
Thankfully, car finance calculators are a great tool to see what’s possible, without impacting your credit score.
Visit our car finance calculator page to find your budget. Our car finance calculator is completely free and has no impact on your credit score – get your budget now!
A big deposit can make getting a car loan easier, especially if your credit isn't great. It shows the lender that you're reliable, and it can also lower your monthly payments. But don't worry if you can't afford a big deposit. There's a thing called no-deposit car finance, and it's pretty popular. With no-deposit car finance, you don't need to pay anything upfront. This can help you save money for the monthly payments later.
Be careful with no-deposit car finance. Your monthly payments might be higher, and you might have to pay a big lump sum at the end. But if you're interested, no matter what your credit score is, you can check out our page here.
Bad credit doesn't have to be forever. There are things you can do to make it better. Here are some tips:
Check your credit score regularly. This will show you how you're doing and what you need to do next. Platforms like Clearscore offer free credit score coaching check them out!
Don't let bad credit hold you back from getting your dream car. Use our free car finance calculator to see what you can afford, and check if you’re likely to be pre-approved without impacting your credit score.
At Marsh Finance, we believe everyone deserves a chance to drive. Apply today 👇 and start your journey to a new car!