Car Finance with an Impaired Credit History
If you have a default on your credit file, you might be concerned that it will prevent you from getting car finance. However, there’s no need to worry – we may still be able to assist you.
A default appears on your credit file when you miss payments on a financial agreement. While a default does indicate that you’ve had payment difficulties in the past, it doesn’t mean that securing car finance is out of reach.
At Vendor Finance, we work with lenders who specialise in helping individuals with bad credit, including those with defaults. Although you may have fewer options or offered higher interest rates, we’re here to help you find a deal that suits your needs.
Can I get car finance with an impaired credit history?
Yes, it’s still possible to get car finance with an impaired credit history, although the process may not be as simple as applying with a clean credit history. A default indicates that you missed payments on a previous credit agreement, which may make you a higher risk in the eyes of lenders. However, this doesn’t mean you’re out of options.
When you apply for car finance with a default, lenders will consider several factors, including:
- The age of the default (the older it is, the better your chances)
- Whether the default has been settled or remains unpaid
- Your current employment and income
At Vendor Finance, we work with lenders who specialise in bad credit and are open to applications from individuals with defaults. These lenders take a holistic view of your financial situation, not just your credit history. If the default was caused by a temporary setback but your financial situation is now more stable, you may have a stronger chance of securing finance.
If the default is recent, lenders may be more cautious, but it’s still possible to find a lender willing to offer car finance. With our help, we’ll work to find the best solution for you, taking your unique circumstances into account and guiding you through the process.
Tips for getting car finance with a default
Securing car finance with a default on your credit file can be difficult, but it’s not impossible. Below are some tips to improve your chances of securing car finance:
- Review your credit report – Before applying for car finance, it’s important to check your credit report to understand your current financial standing. Ensure that any defaults are accurately recorded and look for any errors that could be negatively impacting your score. Go to centralcreditregister.ie to apply today for your free copy.
- Pay off any outstanding defaults – If you have an unpaid default, settling it could improve your chances of securing finance. Lenders may view you more favourably if you’ve cleared the debt, even if the default still appears on your credit file.
- Save for a larger deposit – Offering a larger deposit reduces the lender’s risk, making them more likely to approve your application. A bigger deposit also means you’ll need to borrow less, which could result in more favourable loan terms.
- Consider a guarantor – Some lenders may be more willing to approve your application if you have a guarantor for the loan. A guarantor, often a family member, agrees to cover the repayments if you’re unable to do so.
Whether you’re looking for car finance with defaults or just wondering how a car finance application works, get in touch with us today to discuss your options.