When you have bad credit, it can prove difficult to get any type of loan. Conventional high street loans are normally issued on the basis of an individual’s credit score, so if it’s low, lenders may look at you as high risk – and may not extend credit to you.
If your business relies on one or more vehicles and something happens to one of them, you are going to need to replace it as soon as possible. But what can you do if you don’t think you will qualify for a commercial vehicle loan?
If you are worried about securing a loan for business vehicles with your bad credit, allow us to provide you with some tips on what you can do to improve your chances of borrowing money.
Look further than the high street.
While the high street might be the first place you’d try, you’d be better off searching beyond there. Mainstream lenders may limit their vehicle finance services to unsecured personal loans, so it’s more than likely that they won’t lend to someone with bad credit.
Search for specialists in bad credit car finance.
If you have been searching for bad credit car finance and had all your applications rejected so far, the likes of Go Car Credit may be able to help. As specialists in bad credit car finance, they can make decisions to approve car loans for those who have a bad credit rating, or those that have experienced bad credit in the past. No deposits are required, you can be employed, self-employed and on benefits, and they can even help to re-establish your credit.
Lease a car.
While you may not have the option to legally own the car and the end of the term, leasing a vehicle is a popular choice for many individuals that might struggle to get a loan for one. A deposit can be made at the beginning of the term, and thereafter a series of affordable monthly repayments.
If you have time on your hands, there are other things you can do to improve your chances of getting car finance, such as making your current repayments on time and avoiding links with people who have bad credit. Try to boost your credit rating to show lenders that you can manage your money effectively.