One of the most used phrases over the last ten years has been ‘Bad credit’ and if you are looking into getting a new car then it’s likely to have crossed your mind. Getting declined for car finance due to Bad credit is an embarrassing experience and in recent years a large percent of the UK population have found that they have been pigeon holed into the Bad credit car finance bracket. Bad credit can be defined as any activity over the last 6 years in which you have had difficulty in repaying any of your financial accounts including if any repayments have been late. Other Bad credit items to be aware of include a Default notice which is usually added onto your credit file if you miss three repayments in a row and effectively ‘default’ on your account. This is the stage where the lender will normally pass your account onto a third party for collection – often with a debt collector. Another Bad credit item that can arise as a result of a Default is a County court judgement or CCJ. This is usually when the lender requests that the debt is subject to a court order for repayment and along with a Default will show to potential lenders for a 6 year period. If a customer has a number of Defaulted accounts it might be the case that they have entered into some form of debt management plan whereby a third party company distributes part payments to the applicant creditors. This is also something that we can accommodate with Bad credit car finance as our lenders won’t decline you for this reason as it shows you are facing your debts and not running away from them. One of the major reasons for Bad credit car finance being needed is due to Mortgage arrears – with redundancies and Divorce being the two main factors involved. This is also something that here at MSG we can deal with and usually only requires a letter from the lender to show there is a repayment plan in place.
When underwriting a car finance application the lender will look at your credit file and calculate a risk score based upon your repayment history. In order to lend you money they will have a desired score or level of bad credit or missed payments etc that is acceptable to them. This can change dependent upon how much business they have or need to write but in the last two years we have seen that this has increased and that you require a fairly high score to be sucessfull.Bad credit car finance available from MSG does away with the need to worry about your credit score as the finance companies we work with offer Car finance with no credit check. The basics of the system revolve around the customer being able to show that they can currently afford the repayments via copies of their bank statements and also that they can be ‘traced’ at their home addresses using the voters roll. Bad credit items are looked at but wont generally effect the outcome of the application as much more common sense is used.
Bad credit car finance is available on any UK car or van and they can even be up to 4 years old. Whatever your requirement is highly likely that we can arrange it for you so simply give us a call today or fill out a call back request.