Who Can Get Car Finance?

This month is Pride month, which is the chance to celebrate the lives and achievements of people from all walks of life, particularly those who have overcome prejudice. That’s not to say that we shouldn’t be proud of these individuals and communities throughout the rest of the year – June is simply the time the world shines a spotlight on this important subject!

Here at Vehicle Finance Today, we do our best to help customers regardless of their personal circumstances or credit rating. So if you’re looking for a vehicle loan, don’t hesitate to contact us to discuss eligibility criteria!

Bad Credit Car Finance

When it comes to bad credit, this can make taking out loans more challenging. If someone has a low credit score, it’s usually because they have had trouble repaying credit in the past, so lenders may not wish to risk a similar situation moving forward. However, there are lenders who will look at more than just your credit history, considering things like your employment history, as well as your monthly budget, too.

There are also things you can do to improve your chances of loan approval. For example, you can take steps to boost your credit rating, such as correcting any inaccurate information on your credit file, or registering on the electoral roll. Companies like Experian may also be able to increase your credit rating instantly, by using additional details to calculate your score.

The first step to improving your credit score, and hopefully your chances of getting car finance, is to check your rating. You can do this for free using sites like Experian and Credit Karma. Once you know your starting point, you can see what you can do to increase your credit rating.

IVA Car Finance

One reason for a poor credit score is having negative marks on your credit file, like bankruptcy or insolvency. Even insolvency solutions and bankruptcy orders that have been completed will remain on your credit report for several years, so can lower your rating.

A common form of insolvency is an IVA, which stands for ‘Individual Voluntary Agreement’. This is a legally binding agreement, between a borrower and creditor, which has to be approved by a court. The borrower will make monthly payments of what they can afford, which will be distributed amongst their creditors. The IVA will last for several years, and once completed, any outstanding debt is written off.

Getting a car loan with an IVA may be more complicated than if you had no such marks on your credit report. However, they should still be options available to you. Do bear in mind though that if you’re in an active IVA, you will need to get approval for a vehicle loan from your Insolvency Practitioner.

Self-Employed Car Finance

As a self-employed individual, it can be difficult to take out car finance. This is due to the unpredictability of wages that can come with self-employment. With just about any type of credit option, the borrower will need to make fixed, monthly instalments, which can be a challenge if you’re not paid on the same date each month, and how much you earn can vary!

But this doesn’t mean that self-employed vehicle finance is impossible. As long as you’re earning enough to comfortably afford the repayments and are good at managing your finances, your application should be considered. The fact is, self-employed individuals generally have to be good at budgeting, so they should be in a strong position to make loan repayments.

It’s also worth noting that, like with bad credit car finance, there are specialist lenders who cater to the self-employed. They will take things like your work history into account, as well as your affordability and credit history.

Find a Vehicle Loan With Vehicle Finance Today

If you’re looking for car finance options, Vehicle Finance Today can help! Simply complete our short online application form, and we’ll do our best to connect you with a suitable lender. And because we only conduct soft credit checks, your application with us won’t impact your credit score. Though the lender you’re matched with may choose to undertake a full credit check.

Many of the lenders we work with specialise in certain types of vehicle loan, such as bad credit car finance. They should therefore consider your application on an individual basis, looking beyond just your credit history. Get in touch today to discuss your vehicle finance options! Vehicle Finance Today are here to help our customers, no matter their circumstance.