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Aug
Car finance can be confusing, especially when there are so many myths going around about how it works and how it affects each individual. As the car finance experts, GetCarFinanceHere has taken some of the most common misconceptions and debunked them to find the truth.
You can’t get car finance if you have bad credit
Many people believe that if they have a bad credit score, they won’t get approved for car finance. But this isn’t true. There are many car finance companies, such as GetCarFinanceHere, who can offer bad credit car finance.
We look at an individual’s current financial circumstances and monthly budget to determine whether car finance is affordable for them. So, it doesn’t matter if you have a CCJ, are self-employed, or have experienced bankruptcy, we’ll take your current situation into account rather than only looking at your credit score.
You need to be at least 21 to get car finance
It’s a common misconception that you need to be at least 21 years old to be eligible for car finance. But, just as 18-year-olds can get a bank loan and credit card, they can also obtain car finance.
Often, younger people might find it difficult to get car finance due to the fact that they have had less time to build up a decent credit score. However, sometimes this problem can be avoided by younger people applying for joint car finance with a parent. If they have a regular income from a steady job, they may find that this also helps improve their chances of getting approved for car finance.
You can’t negotiate car finance deals
Often people think that the first car finance deal that’s offered to them will be the final one. But most car finance companies are open to negotiations on the deal. You might be able to pay a higher deposit to get better interest rates or lengthen the period of time that you repay the loan to get lower monthly payments. However you want to approach it, you are welcome to open up a discussion with your lender about the terms of the loan.
You need a deposit for car finance
It’s common to pay a deposit when you apply for car finance, Paying a lump sum secures you the deal, and paying a higher amount can often mean you get better terms on the loan. However, a deposit isn’t always necessary.
GetCarFinanceHere can find you the best deals for no deposit car finance. So, whether you need a new car in a hurry, don’t want to touch your savings to get a car, or simply don’t have the cash available for a deposit, we can help. We can still find you affordable car finance, even without paying a deposit.
Car finance negatively affects your credit score
Some people think that having car finance will negatively impact their credit score. But car finance works in the same way as any other type of credit – as long as the repayments and loan terms are met, there’s no negative impact. In fact, if you regularly make your payments on time and don’t miss any, car finance can be a good way of building up a good credit score.
Applying for car finance multiple times in a short period of time can affect your score. To avoid this, it’s best to only have soft credit checks done until you are sure you meet the criteria to be approved for car finance. Soft credit checks won’t affect your credit report. If you get rejected after a hard credit check, you should leave it at least 12 weeks before undertaking another hard check.
You can only finance new cars
When car finance was new, it was typically only available for new cars. However, we now have the option to finance both used and new cars. Sometimes, there will be different terms for used cars, such as the car will need to be less than 10 years old by the end of the loan period. It’s always worth checking with your loan provider if there’s a specific used car you have your eye on, as car finance will usually be an option.
GetCarFinanceHere can find you the best car finance deals for new and used cars, including no deposit options, and car finance for bad credit. You can apply online today or contact us to speak to the team about how we can help you.