The Public Perception of Car Credit

In the past, the notion of using a car credit provider to finance the cost of buying a new car was often met with criticism, and attached to a – perhaps unwarranted – stigma. Those fortunate enough to be able to afford a new car off-the-cuff would scoff at the idea that someone with a bad credit history was able to secure a financial loan to buy an expensive new vehicle. However, the reality was, and still is, that for many of us, our credit scores don’t allow us to take out a personal loan from a bank or building society, and so, if we need a car, click here http://7engine.net we have to make use of a car credit provider. Granted, there are those that would seek to abuse this system and utilise a car credit loan to obtain a new car knowing full well that, further down the line, they won’t be able to afford the repayments (the cruel spiral of debt). However, for most, car credit was a lifeline to assist them in buying their desired vehicle, as long as – regardless of their history – they were now in a position where they could meet the repayments.

These days, the stigma has somewhat dissipated, as the global recession has caught out people from both ends of the financial spectrum. The public have come to realise that having a bad credit rating is not necessarily representative of uncontrollable spending habits or poor financial decisions; often the reason is far more complex (recession, illness, divorce but to name a few). Credit lenders have obviously also had to adapt to this change; as the quantity of potential finance package applicants is now so great, that the decision to ignore such an large profit pool is seen as a poor business choice.

Those of you that are unfortunate enough to be in such a position may be wondering how you can avoid taking out bad credit car finance to begin with. Less so because of the stigma; more so because of the high interest rates (and subsequent higher monthly repayments). In truth, if you’re seeking the services of a car credit provider, then it’s probably because you’ve already been turned down elsewhere for car finance. The most likely reason for this is because you have failed to stick to the terms of a past credit agreement (by making late/missing payments), although your credit rating also suffers if you’re declared bankrupt, enter into an IVA, or have a CCJ made against you. However, before you fret, curse, or weep too much, there are car credit providers out there able to guarantee you a personal loan with a fair APR.

In order to avoid taking out bad credit car loans, you need to visit this site http://y-car.net  to work on paying your bills on time, and ensuring your ratio of income to debt is as low as possible. On top of this, closing down any unnecessary credit accounts – rarely used department store cards and the like – will also serve to improve your credit score. Lastly, don’t fall into the trap of applying for a loan from multiple lenders in a short space of time; it won’t maximise your chances of securing finance it will only make lenders question your motives and financial stability.

 

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