Maintaining a healthy credit report is important to us all, no matter what walks of life you hail from. In these unprecedented and difficult financial times, doing so is becoming harder and harder. You may struggle with poor credit for a number of reasons, all of which can be changed or reversed over time.

These include:

• Late or missed payments: Should not do too much harm to your credit report if they occur irregularly.
• Paying the minimum: Paying more than the minimum can lower interest payments and shows you are comfortable with payments.
• Declaring bankruptcy: Can seriously affect your credit report. Did you know that chapter 7 bankruptcy can eliminate virtually all of your debts. For more info visit a bankruptcy law firm near you.
• Being the subject of a CCJ: Can affect your credit rating for up to 6 years.
• Maxed out finance: Shows that you have no problem spending credit, but some issues paying it back.
• Having no previous finance history: Someone that has never borrowed anything before is difficult to trust as there is no data to go off.

Different Types of Car Finance

When searching for options to finance a new car, there are a few options open to you.

These include:

• Hire Purchase (HP): Secured against your car, so you do not officially own it. Instead, you hire the car until the end of your deal and the final payment has been made.
• Personal Contract Purchase (PCP): Similar to a HP deal but at the end of the deal you can hand the car back, own it with a balloon payment or use it as equity for a deposit for another car.
• Personal Contract Hire (PCH): You never own the car with this type of deal. At the end of the deal, you will hand the car back to the lender.
• Personal loan: An unsecured loan that is personally accountable by you, so it is not directly linked to your car. The loan company will pay you the money and you will pay the dealer.
• Guarantor loan: A close friend or family member becomes your guarantor, guaranteeing that any repayments will be made if you fail to keep up with them.

Both PCP and PCH options will typically involve some form of deposit or upfront payment.

The Most Affordable Car Finance Option

Looking at the list above, do you want to know what the most affordable car finance plan is for you? Do you have poor credit and worry that this may limit your options, or at least make them more expensive? Do not fret, with a bad credit car finance deal you can obtain the car of your dreams, with a deal that suits your circumstances and budget. This type of car finance is designed to help people with lower credit scores obtain auto finance.

This allows you to spread the total cost of buying a car over a fixed term and period of time. It removes the need to make a large upfront payment at the beginning, instead relying purely on monthly payments, which you will need to prove you can afford to pay.

No Deposit Packages

You needn’t worry about getting together or saving for a large lump sum payment at the start of your plan. Just simply pay your monthly payments and that’s it! If your need for a car is immediate, then this is a great option for you!