You may be in urgent need for a car finance to buy a car but are bogged down by your bad credit record. You may be suffering from bad credit due to any reason such as bankruptcy, county court judgment, individual voluntary arrangement, arrears, defaults, etc. But you need not worry because now-a-days, car finance is available even to those who have a bad credit score. 

When you go to a car finance company with a bad credit record, they will first check your credit information and assess the kind of finance you require. They will then forward the information to an authorized car dealer. The car dealer then finally approves your loan. In case you fail to get an approval, the finance company will assist you by telling you how to improve on your credit standing.

There are two basic categories of bad credit car finance: secured and unsecured. If you take secured bad credit car finance, you will need to give your car as collateral to the lender. As the risk factor for the lender is less, these loans come with low interest rates and longer repayment tenure. On the other hand, in case of unsecured bad credit car finance, there is no collateral required but the interest rates are high and repayment period short.

The eligibility criteria to avail bad credit car finance are: you need to be above 18 years of age and should have a regular source of income. Some finance companies try and ensure that you did not have any auto loan repossessions in the past. Bad credit car finance come with a high rate of interest compared to conventional loans. To improve your credit score, you should never fail to make any repayment and should always make them on time. After you have improved your credit score, you can always go for a car refinance to reduce the interest rate and monthly installments.

It is always a good idea to undertake proper research before committing yourself to a particular car finance deal. Compare various loan quotes and try to pick one that suits your personal needs and requirements. You can use a loan calculator to evaluate monthly instalments. Check the reputation of the lender whom you are going to take the car finance from. You can also conduct your research online thus saving time, effort and money.