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A Guide To Car Finance For Those With Bad Credit

Compact Cars, Bridgend

September 26, 2016 at 2:11 PM

Bad Credit Car Finance Made Possible with the Right Lender

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Buying a car can be hugely exciting, especially when you strike a bargain. Many people with bad credit think that these bargains don't exist for them. The truth is, if you know where to look, you can find reputable car dealers who can help you own a car even when you had given up hope. Compact Cars can help you get the car you want because they offer bad credit car finance, subprime car credit, low deposit car finance and flexible ways to pay back your loan.

A Down Payment Makes Finance Easier

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With bad credit finance, you can help the doors swing open more easier for you to get finance by collecting a down payment. A guide would be to have at least 20% of the car's purchase price to put down. 

One good thing about the bad economic climate is that you can also take a look at repossessed cars, especially with creditors being willing to look beyond at the credit history of their car buyers. To secure these once-unavailable car loans, applicants need to try and clean up their credit rating. Update it regularly. CNN Money has confirmed that lenders are no longer turning their backs on those with bad credit scores. In deciding whether to approve financing, lenders won't necessarily secure a loan for someone with bad credit to buy a luxury vehicle, but will offer financing for a lower priced compact car.

What Owning a Car Entails?

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It is also a good idea to research lenders and analyse the fine print of their offerings. All expenses need to be factored in such as the interest you'll have to pay, your monthly payments, insurance for the vehicle as well as fuel and maintenance. One of the advantages of bad credit finance is that it is an opportunity to start improving your credit. If you make timely payments, you can start building up a strong financial standing for when you next want to buy something on credit. 

Unfortunately a disadvantage with bad credit car finance is that you're going to be paying higher interest rates. This is because you're seen as a risk, but at least you've got a car. Do research, because you don't want to be at the mercy of unscrupulous lenders, who will give you a lot more to worry about than just the high interest rate.

Always do a bit of research – price is a huge factor, especially when money is tight. It pays to compare similar cars at different dealers and it pays to compare different lenders. You want a lender who can give you answers regarding finance quickly. Excellent services strengthen relationships between customers and lender, and you'll want to tell everyone about how Compact Cars didn't allow your bad credit to get in the way of getting yourself a car


 


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