So, you’re looking into having your car financed, but your main worry is that you would not get approved due to your bad credit score.
In a way, yes, your credit score and report will definitely affect your car finance application. However, there are ways to repair your credit score and make yourself credible and trustworthy to lending companies.
You should also look into bad credit car finance, as they give everyone a fair shot in car finance, regardless of your credit score.
With a bad credit score, your financial options are definitely reduced, although not completely gone. And to a lender, a consumer with a bad credit score is not entirely trustworthy.
So, follow these tips ASAP, and be on your way to a good credit score.
Keep Your Credit and Store Cards Out of Your Sight for a While
Credit cards are huge temptations, and as long as you are using them, you will be at risk of getting into debt. Delayed payments are always reflected poorly on your credit report. Store cards usually carry high interest rates, which can easily get you in trouble.
Infringements usually take 2 years or more to be cleared from your credit report, so if you know you cannot trust yourself with credit cards, then it would be best to cut ties with the bank.
Pay Your Debts and Arrears
One of the first things that you would have to do if you want to repair your credit score is to pay off your current debts and arrears. You cannot expect improvements on your credit report if you do not pay your outstanding balances.
If you are finding it difficult to pay all of your debts in one go, then ask a debt counsellor for advice. You can also ask your bank for payment options, and if they accept installment arrangements.
Review Your Credit Report
Ask for a copy of your credit report and see if there are any discrepancies. Check for accounts that you never opened (identity theft), or debts and payments that the bureau might have mistakenly included on your report.
You can also check for negative information that should have been removed months or years ago.
Apply for a Credit Repair
Credit repair companies offer credit report repairs for people with bad credit. They work with the client, and they advise them on what to do to restore their credit scores.
You have to know though, that there is definitely nothing your credit repair company can do that you cannot. You can always research on how to improve your score and report, and this article gives you a fair shot in doing just that.
Try the Auto-Pay Method
If you often forget to pay on time, then this is the answer to that problem. Late payments often incur a penalty and of course, a dent on your credit report.
Set-up your bank account, and have them auto-debit your payments for you. The bank will automatically transfer the payment to your lender, which will automatically be debited from your bank account or pay.
Ask for an Edit on Your Credit Report
Things such as your marital status, tenureship in a company, and property investments can be added on your credit report. If you are currently married, then it would be best to mention that.
Owning a house or a car for a long time can also help with improving your credit score, as well as how long you have been working with your current company.
These things are proof that you can indeed pay for your own house and car, which makes you trustworthy to the lender’s eyes. Being married also means that you can split your bills payment with your spouse, which will make the lender feel more at ease.
Nothing feels more satisfying than seeing your credit score go up. You must take your credit report seriously, as this is your gateway to borrowing money from the bank and other lending companies.
Learn to manage your finances, take everything seriously, and you are surely on your way to a positive credit report. Good luck, and may your credit score and report improve as soon as possible!
