Bad credit Car Finance: CCJs, credit defaults, mortgage arrears

March 19, 2014 By Usher

If you are hoping to buy a car, be it used or new then you might be looking for some kind of car finance. This shouldn’t be a problem if you have never had any problems with credit in the past. If you have never defaulted on a payment, have held a steady job for some time, have a mortgage with up to date payments, be a homeowner and have held a bank account for a long time then you will more than likely have got a good to excellent credit score.

Unfortunately life just isn’t like that for a lot of people. Difficult economic time, redundancies and changes in a person’s circumstances can all mean that loan/mortgage/credit card/car finance repayments may have all been missed. This may have happened some time ago but the credit history will show every single missed payment and this will unfortunately go against you.

Bad credit Car Finance

Some people have county court judgments which are when missed repayments have resulted in the case being taken to Court to force you to pay. This is one of the worst things that can appear on a credit history, along with bankruptcy orders.

Having a bad credit history can seriously limit the borrowing options available to you when looking for car finance. As stated before, CCJs, bankruptcy, defaults on payments etc can all leave a big negative mark on your credit report. These can be a real problem when looking for car finance.

It is reassuring to know that there are money lenders in the United Kingdom who will lend people who have a low credit score. This includes tenants too, as well as people with CCJs, missed repayments and bankruptcy orders. These are specialist lenders and are very understanding regarding your previous credit problems.

There are specialist car dealers who offer finance to customers with no credit history, or a poor credit history. They offer car finance to people who may have been refused car credit from the banks or other more traditional lenders due to the CCJs, mortgage arrears, defaults etc. Some may not even carry out a credit check.

The best way to find one of these specialist lenders is to look online for a bad credit car finance company. You will be happy to find that there are a number of specialists out there. Obviously the terms and conditions of any car finance they offer may be different as the risk associated with people with a poor credit history is much greater than for those people who have been able to get a good credit score.

The important thing to remember is that when taking out car finance and have had problems in the past then make sure you can afford the repayments. That way you will avoid making any credit score worse and will be able to borrow money again in the future.