When it comes to high-value purchases, one of the main ones we make apart from our homes is a car. Depending on the type of car you want and whether you want a brand-new one, this can be a considerable investment and one that you may need to take out finance for. The good news is that there are lots of options when it comes to getting the money to buy a new car. The bad news is that these options are not always available to those who have damaged credit.
When you have a bad credit history and low credit score, getting any sort of finance can become challenging. You may struggle to find a mainstream lender, or you may find that you can get finance but on very unfavorable terms. It is important to ensure you look at all of the options to determine which one is going to be right for your needs. In this article, we will look at a few of the options you can consider.
What Are Your Options?
Once you have found the perfect vehicle and you know how much you need, you can then start looking at your options when it comes to financing the purchase. The options for those with damaged credit are more limited than for those with good credit. Some of the options you may be able to consider are:
Bank Loan/Personal Loan
One of the options you may have is to get a personal loan from your own bank or from an online lender. If your credit score is not great but is not all that bad, you may be able to get this type of unsecured loan. A range of factors are taken into consideration when it comes to eligibility, your credit score and income being among them. If your credit score is very low, however, the chances of being able to get a personal loan from your bank or another mainstream lender will be very slim.
Another option you can consider is BHPH finance. Many people with bad credit find easy financing with Buy Here Pay Here dealers. You are more likely to get the finance you need with minimal hassle when you use of these dealers, and this means you can get the car you want even if your past credit history and current score are not great. Often, you will not even need a deposit, which is an added bonus for those who are limited in terms of funds.
If you are a homeowner, you could consider taking a secured loan to get the car you want. In order to do this, you will need some level of equity in your home. This can be a lengthy and drawn-out process, and it also means that you risk your home if you fall being on repayments. So, this is an option that should not be taken lightly.
These are just some possible solutions when it comes to getting bad credit finance to purchase a vehicle.