Buying a used car is a big decision for anyone, but what happens when your applications for traditional finance are declined?
After buying a house, there are few purchases that are more important (and daunting) than a car. And it should never be a decision that you take lightly. Months of research, consideration and narrowing down of options can go into choosing a car, especially if you’re shopping for a used vehicle.
Being able to get behind the wheel and take to the road is a milestone whether it’s your first car or your fiftieth, but it’s not always so easy to reach this crucial moment. If you’ve tried applying for finance for a used car, there are occasions when you might find that some lenders refuse your application.
So why is this, and what should your next steps be? The experts at Zoomo Car Credit are here to break things down.
You have bad credit
One of the most common reasons why people find themselves refused car finance is a bad credit score. With so many things to factor into the cost of living, it can be really difficult to maintain a perfect credit score. Something as simple as failed direct debit payments to a credit card can stay on your record for several years, making it hard to make yourself appealing to a lender.
Remember, too, that there are a number of other factors that contribute to your credit rating. The number of credit cards you own, whether you have a mortgage that you make regular repayments on and even the utilities bills and phone contracts that you have.
One of the most annoying things for many responsible people is that never having relied on a credit card or finance deal before can also count against you! If you have never taken out any form of finance many potential lenders will discount your application because there is no “track record” for handling credit.
County Court Judgements (CCJs) or any kind of missed credit repayment will negatively affect your credit score. Bad credit can stay on your credit report for up to three years, while bankruptcy or CCJs can stay on there for double that time.
You don’t fit the lender’s criteria
This can be a surprise to some people, but it happens more often than you may think. Many lenders will have very specific criteria when it comes to offering finance, so even if you have a good or reasonable credit score and are in full time employment there may be something that prevents you from being accepted by that particular lender. It’s important to get clarification from any lenders who have refused you about why they could not accept your application.
You don’t have a full driving licence
No matter where you’re seeking car finance from, if you don’t have a full driving licence you are bound to struggle to get approved. There are a small handful of lenders who may provide finance without the need of a full driving licence, but most of them will recommend you create a joint application with someone else who does hold a full UK licence.
The most common situation where this occurs is when someone with a provisional license wants to sort out their car finance before passing their test. If this applies to you, it may be better to wait until you’ve passed your test.
You’re seeking the wrong kind of car
Of course, the type of vehicle you have chosen will be a factor when applying for finance. Being realistic is key in this situation. If you’ve only just passed your test and you’re seeking approval on finance for a Bentley, you probably aren’t going to get very far. Opting for something more practical will significantly reduce any potential headaches you come across when applying for car finance.
You’re looking in the wrong places
If you have bad credit or are simply having difficulty finding the finance you need, you may not be looking in the right places. Websites like Zoomo Car Credit make it easy to get accepted for car finance even if you have defaults, no credit history, rent/mortgage arrears, ex-bankruptcy or CCJs. Why not give us a call on 0191 238 1084 and talk to some of our experts.
Can Zoomo Car Credit Help Me Get Car Credit?
It’s not all bad news if you’ve been refused car finance. If you need a car but can’t get credit, we can help, even if you have:-
- no credit history
- rent/mortgage arrears
- ex bankruptcy
It doesn’t matter if you’ve been refused elsewhere, make Zoomo Car Credit your next port of call.
With more than 25 years of experience in the car trade and car finance, we makes things simple regardless of your financial position. What could be better than buying a car you really want with no deposit to pay?
Let us find you the best possible finance package deal available, tailored to suit your individual needs. Regulated by the Financial Conduct Authority, all staff are SAF certified and highly trained. Expect a professional as well as a courteous service at all times.
There’s a huge range of makes and models to choose from, so you’re really spoilt for choice. Applying for is easy to do online. It will take around 30 seconds to complete an application form. Follow the online steps 1-3 and you’re on your way to buying the car you’ve always wanted.