Another NO. In desperate need of new wheels, you put the phone down in despair. Will you manage to obtain vehicle finance again? Or will the past haunt you forever?

Well, it’s by no means a great situation to be in, but all is not lost. If you know how bad credit car loans work you can get one with less issue.


Your history follows you

If you have, or had an account anywhere, then you are in the credit system. Even for regular utility bills such as electricity, gas or water, a trail of your financial conduct is kept on record and rated continuously. The system assigns a live credit score to your profile and this information is available to selected parties on request, such as yourself and financiers.

Wearing the lender’s hat

Upon receiving your application to borrow money, the car loan company needs to figure out whether you will actually pay them back. Let’s face it, wrong or undue risky decisions may send them bankrupt.

So, one of the first things they do, is to access your credit score. A high score is good, but a low score will spook them on the safety of their funds. Generally, in the finance game, the mantra is no business rather than bad business, so your case is binned.

 Teaming up

 Get a reputable and registered auto finance broker on your side.

The knowledgeable support may introduce overall positivity to the mindset and it will certainly boost your odds to get a car loan with bad credit.

As far as credit profiles go, brokers deal daily with a full spectrum of “the good, the bad and the ugly.” It is also in their best interest to get loans approved, after all, it is their bread and butter, so they will do their utmost to guide you to success. They know how to put the best spin on your application to, at the very least, get looked at by the lender and not be summarily tossed.

If you do find success, it will certainly come at a premium i.e. the lender will charge you a higher interest rate on the loan as penalty for their increased risk on accepting your business. However, the broker will act in your best interest and advise whether the extent of the increased premium is warranted or over the top. They might even succeed in negotiating a better deal for you.

Good luck and all of the best with your car loan hunting. Remain positive and remember, every “no” might be that one step closer to the YES! you are looking for.