60% of people think you can’t get approved for bad credit car finance

A recent customer survey from Refused Car Finance showed that 60% of people think that you can’t get approved from car finance with bad credit.

Main findings:

–   60% of customers surveyed thought that people with bad credit can’t get approved for car finance

– Over 80% of people think your credit score is the most important factor to getting you approved for finance

– Nearly 80% of customers surveyed said car finance has a negative impact on your credit score.

– 75% said that making late repayment or missing payments has the biggest negative impact on your credit score

– Over 25% of customers surveyed said they don’t know what their current credit score is and nearly 20% have never even checked their score before.

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Using data from a small segment of Refused Car Finance customers, the bad credit car finance specialist firm found that 60% of Brits think that you can’t get finance with bad credit. This is a common misconception and Refused Car Finance want to help change this outlook on the impact of your credit scores on your ability to get approved for finance.

Checking you credit score regularly is a great financial habit to get into. Knowing where you fall on the credit scale and also what is recorded on your credit file before you apply for car finance can help to get you approved. Over 25% of people surveyed said they didn’t know what their current credit score is and nearly 20% have never checked their credit score before! It is recommended that you check your credit score at least once a month and when you do, you should make sure all your information is accurate and up to date. Also keep an eye out for any finance applications which you don’t recognise as you could have been victim to a fraudulent application in your name. If you do see anything that doesn’t look right or need to update your information, you can contact the credit referencing agency who provided your credit report.

The survey also found that some people were confused as to which factors had a detrimental effect to your credit score. Some of the customers surveyed thought that monthly income, age and employment status affect your credit score, but this isn’t true. Car finance brokers such as Refused Car Finance will usually ask for applicants  to provide this information, but it doesn’t have an effect on your credit score. Car finance agreements require you to be at least 18 years old as you are signing a legal document. Lenders will also usually ask your monthly income to make sure you can afford to pay back your car finance agreement and prove your affordability but how much you earn does not affect your credit score. You can also get accepted for finance if you are self-employed, unemployed or in the armed forces too.

Refused Car Finance believe that your credit history should not  hold you back from getting car finance and instead look at affordability to help get you matched up with the most suitable lender from a large lending panel. Using a car finance broker when you have bad credit is really beneficial. Nearly 80% of customers surveyed thought that even applying for car finance can harm your credit score. This is not true. When you apply online with Refused Car Finance or many other car finance providers, a soft search credit check will be performed on your credit file. A soft search credit check does not harm your current credit score and does not leave a mark on your credit file! However, making multiple applications for finance using a hard search application can have a negative effect on your credit score.

Over 60% of customers surveyed thought that you can’t get accepted for car finance with bad credit. This is a common car finance myth. When car finance was first offered in the UK it was usually only people with good credit could get accepted for finance. Refused Car Finance are committed to helping people with bad credit get car finance. They match applicants with the best lender for their circumstances and the lowest possible rate in line with responsible lending policy procedures. You can then take your finance deal to any dealership across the UK that is verified by the Financial Conduct Authority and get the car you want within your budget!

You can find the full article here: https://www.refusedcarfinance.com/bad-credit-car-finance/

About Refused Car Finance:

Refused Car Finance is a North-East car finance broker helping people across the UK get a suitable car finance deal that is within their budget. Refused Car Finance is a trading style of UK Car Finance Ltd. They specialise in helping people with bad credit get car finance. As a broker and a lender, they are able to offer customers with a wide range of backgrounds the finance they need to buy a car from any reputable FCA approved car dealership giving the customer a huge choice.

Published on PRFire.com