If you are fed up of being reliant on public transport that is constantly running late and accepting lifts from generous friends and families, then now is the time to take control of your future. Perhaps you have never gotten around to learning to drive or simply can’t afford to buy your own car and your credit history is a little worse for wear? Take control of the situation and drive your future in a new direction.
Get those lessons booked, pass your test, and buy a car using our car finance for bad credit service.
While this is, of course, easier said than done, it will change your life.
Your credit history and score are a big deal, but if yours is looking a little sorry for itself, there are things you can do to improve your situation. In order to help you take control of your future, we’re going to discuss some car financing basics. Let’s take a look.
When it comes to getting a loan – such as car financing – your credit score plays a very important role. While lower scores often mean you will have to pay a higher rate of interest on any loan you get approved, there is help available to those that are in need.
There are a number of things you need to be aware of before taking on a financing deal with bad credit.
The debt amount you own compared to the amount you earn is referred to as your debt-to-income ratio. It is important to ensure that your repayment plan won’t leave you in further debt elsewhere. In other words, ensure your loan repayments are affordable.
Pay more than the Minimum
As with any loan, you can lower the size of the loan by making a larger initial deposit. You can also reduce the amount you need to spend overall by making payments that are above the minimum threshold each month.
The length of the loan
The length of the loan refers to the period of time you want to pay back your vehicle finance over. For a car loan, this is often spread over at least two years. The length of the loan determines how much you pay each month for the car, so bear this in mind when seeking financing options.
By getting to grips with some of the basics of car financing, you will be able to look for a car financing deal with bad credit, knowing exactly how much it will cost you and for how long.
Want to know more? Browse our site today or contact our team on 0161 292 8200.