Leading car finance lender Welcome Finance has announced the discontinuation of the £250 cash back promotion offer. The company communication to this effect claims that Welcome’s car finance still compares favourably with the competition at 19.90% APR typical. Moreover, other popular offers like £1000 minimum part exchange and 7 days’ free insurance continue to be open.
While we hope that the market conditions will soon ease and Welcome Car Finance will reintroduce the offer, for the moment, the effective cost of financing a car will go up for borrowers. Also, at least a few would find themselves ending up being able to borrow lower than they had wanted and hence settle for a cheaper car or, unfortunately, not eligible for finance at all.
If you badly crave for a car but do not have adequate money to purchase one, taking a car loan is the best option. But if you have an adverse credit record, you might think that you’ll find it difficult to find yourself a loan. However, you need not worry as there are a multitude of lenders who are willing to provide an adverse credit car loan now-a-days.
You may be suffering from an adverse credit record due to many reasons which include defaults, arrears, missed payments, bankruptcy, insolvency, county court judgement, individual voluntary arrangement etc. An adverse credit car loan is especially designed for people with an adverse credit status.
An adverse credit car loan can help you improve your credit history. These are typically short-term loans with repayment periods lasting from three to six years. Almost all lenders will conduct an analysis regarding your financial standing and ability to repay before giving you a loan. With an adverse credit, it is likely that you will be charged a high rate of interest, at least initially.
There are two basic categories of adverse credit car loans: secured and unsecured. With a secured adverse credit car loan, you would require to offer your property as collateral. Secured loans come with a comparatively low interest rate, small monthly instalments, and long repayment periods and also give you the advantage of availing of a high loan amount. However, your property may be repossessed in case of default. On the other hand, in case of an unsecured adverse credit car loan, there is no requirement of any collateral, paperwork is less and the money is delivered quickly. But these loans have a high interest rate, larger instalments and shorter repayment period.
You can research on the internet to avail an adverse credit car loan. Shop around and request for online quotes. Try and find a lender who offers the most competitive rate and who can process the loan as quickly as possible.
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.
