Car Finance: Do I need a good credit history?

We are asked this question so often we have decided to write an article on it. Customers want to know is it hard to get accepted for car finance; and if they have a poor credit score can they still be accepted for a car loan. Bad Credit Car Finance – does it exist? Is finance out of reach for me?

In general, you don’t need a good credit history to be offered car finance. Your credit history will determine what offer you are given. Experian have recently advised that nearly 20% of there customers that have accepted car finance offers have credit scores below 600. Obviously; those with an extremely poor credit history will not be offered finance.

What credit checks are done for Car Finance?
Finance companies will not want to offer money out to just anyone. Imagine if you were lending your own money out; you would want to be positive that you will get the sum returned right? For this reason; your credit score will be checked by finance companies. They will look at your credit history so they can evaluate how likely you are to repay the car loan you are about to take out.

It is up to the lender what credit checks they carry out for their due diligence. They could use a third-party service; such as Experian or Equifax. Or they could use have their own internal credit scores; which can be based on various sources of information including your credit report. A good credit report is not the sole factor but will play a strong part in your chances of getting a loan.

Your credit report is useful for lenders because it shows them how consistent you are when repaying your debts in the past. It will show missed payment or defaults. If you have these, they will think you are less likely to repay a new loan than someone that pays for everything on time. Makes sense, right? Also, if you already have many loans and are near to your credit limit, this may suggest that you cannot afford to take on another loan.

My credit history is poor? What next?
If you have applied and been declined; all is not lost. The decision to decline you would have been made by the finance lenders. Just because you were declined; doesn’t mean that you will be in future. There are several ways you can improve your credit score; one of which is by paying your bills on time.  Paying on time is a great way to prove to lenders that you’re capable of managing finances effectively.

More ways to improve your credit score can be found on our blog article: https://www.carfinancedeals.com/blog/104/how-to-improve-your-credit-score-bust-myths–improve-your-rating

The good news is that your credit report doesn’t stay the same from the moment you first get one. It’s a constantly changing record that reflects if and how you use credit throughout your life. It updates every 30 days. If you pay everything on time; within 3 months you should have improved your score enough to re-apply and hopefully, this time get finance approved.

Cheap Car Finance Deals No Deposit

We are often asked from our customers; “can you get us a cheap car finance deal with no deposit” in short the answer is; give us a try and apply.

When looking for a Cheap Car Finance Deal with no deposit – it is important to understand; Yes – it is possible that it can be achieved; but no matter which company you apply with; ultimately the best deals will be given to the customers who have the best credit score.

I have already wrote about how to improve your credit score in a previous article; so please click here to view this. I therefore wont spend time covering this on this article but instead focus on some commonly asked questions. That said; please do view the article as it is packed full of useful information.

Firstly; if you are looking for no deposit car leasing with free insurance; please note we currently only offer hire purchase and lease purchase solutions. If this changes in the future we will update the site accordingly. We have also wrote a good in-depth article on hire purchase; please click here to view this. It covers all the pros, cons and ultimately the benefits of HP and explains why this is the most popular form of car finance.

We do offer Cars on finance with no deposit. We do offer much more than just cars; although these are most popular. We also offer finance for motorbikes, caravans, camper vans; and other vehicles; even quad bikes. We have a Car Finance Calculator that allows you to set your budget to see examples of how much per month you will be asked to pay depending on how much you are willing to put down.

We offer car finance deals with no deposit for customers that have bad credit. So yes; we offer bad credit car finance however if your credit score is currently poor you will not receive as a competitive rate as we would like to offer you. It is important to be realistic with your current situation and improve your credit score so that in the future you will be offered more attractive car finance deals.

Car Finance Deals is one of the leading car finance companies online with a host of quality lenders. We are FCA regulated and aim to get you the best possible vehicle we can on finance with £0 deposit. Whether you want a automatic car on finance or a manual car; we will view the whole of the UK market for you to get you the best offer we can. We also provide our customers with finance options such as used cars with no deposit near me; or should i say near where you live. We can search from a radius of 5 miles from your house to a national search of over 100 miles to get you the best offer we can; depending on how far you are willing to travel. Also worth mentioning; we may also be able to offer a delivery service so you do not have to travel at all to collect your car.

If you are looking for low interest car loans or just in general; the best car loans on offer in the UK right now; give us a try. Apply by clicking here.

How to improve your credit score: Bust myths & improve your rating

I am going to cut to the chase as fast as i can with this article and offer advice on how to improve your score and bust myths so you can completely focus on getting a better rating. But first, just to cover all bases i will explain what a credit score is and where to check your current score.

Improving your credit score (also known as a credit rating) is important because it will affect your ability to borrow money or access products such as loans. Furthermore; the better your credit score, the more lenders will be attracted to offering you a loan, and thus in this case the better deal Car Finance Deals can offer you.

What is your Credit Score?
Your credit score is created from information held in your credit file. Your credit file is a record that shows how responsible you are with your repayment of debts. And then your score comes from this file as a numerical expression based on a level analysis of your credit file; to represent the creditworthiness of you.

Why is your Credit Score important?
The information held on your credit file will be used to decide whether the finance company will lend to you. Going further, even if you are approved, a poor score will result in less money the lender will borrow you and more interest they will charge, as they will see you as a greater risk. This is why it is absolutely so important you should never miss any debt payments. It can have a dramatic affect on your earnings in the long-term. The most recent information on your credit file will have the most impact, as lenders will be interested in your current financial situation. That said; your file will have at least six years of your previous activity on record. We would advise you to check your report often, because if can help you spot any mistakes on your file and to spot any fraudulent activity which maybe harming your ability to lend.

How do i check my credit score?
You can check your credit score by using many credit agencies, some are paid for services and some are free. You can request full details of your credit file or simply get your score online. Four of the most popular websites in the UK are listed below. Click on each to go directly to those websites:

Equifax: https://www.equifax.co.uk/
Experian: https://www.experian.co.uk/
ClearScore: https://www.clearscore.com/
Noddle: https://www.noddle.co.uk/

What you will see in your Credit File
In general your file will include;
Name, address and date of birth.
How much money you owe to lenders.
Any late/missed payments or defaults.
Any CCJs (County Court Judgements) against you that are not paid in full within one month of receiving the notice.
If you are entered into an IVA (Individual Voluntary Arrangement) or have been declared bankrupt.

Busting Credit File Myths
There is no such thing as a blacklist or uniform credit rating.
Your score is not actually on your credit file, this is because the score varies depending on which credit agency you are checking your file with.
It is important to understand what lenders know and dont know about you; so you can make sure you have the best credit file possible;

What lenders know (data shared on your credit file)
Past dealings you have had with the lender
Electoral roll information
Court records
Search, address and linked data
Bank Account(s) data
Some history from utility providers
Fraud data
and the application form (in this case, the one you use when applying for Car Finance: https://www.carfinancedeals.com/apply)

What lenders don’t know (data not shared on your credit file)
Student loans
Council tax arrears
Parking or driving fines
PPI, CPP, bank charges and other reclaims
Race, religion, ethnicity
Salary
Savings accounts
Medical History
Criminal Record
Child Support Agency payments

How to improve your Credit Score

Make your payments on time. Never miss or be late on any credit repayments.
Use a credit card little and often.
Pay for your insurance(s) yearly rather than monthly.
Register to vote or it’s much harder to get credit.
Don’t withdraw cash on credit cards.
Don’t let your partner or flatmates score damage yours. Keep your finances separate.
Stay away from Payday loans; they can kill applications.
Never pay for a credit repair company.
Avoid making multiple credit applications in a short space of time.
Cancel unused credit and store cards.
Fix mistakes on your report.
Reduce your debts with savings, doing this can save you more money in the long run.

How long it will take to improve your Score?
It depends on a number of things, but you should know it won’t happen overnight. Credit history is built up slowly over time as you increase the number of on-time payments you make. So keep making those payments on-time and you will ultimately get access to more offers; higher credit limits and lower interest rates.

Win a Mystery Prize! New month New GiveAway: Pick a Car

Its the start of a new month so lets kick it off with a Mystery prize GiveAway! All you have to do to enter is pick a car from the selection in the picture. One of these cars has the Mystery Prize inside. If you select the correct letter, you will be shortlisted into winning this months prize!

For a Greater chance of winning; enter four times to get four entrants! Yes; there are 4 ways you can enter this competition! So get 4 chances of winning when doing all of the below:

Entry Method #1 The Giveaway Landing Page: (On this page)
– Your entry will be confirmed by simply commenting in the comments box below.

Entry Method #2 On Facebook:
https://www.facebook.com/carfinancedealscom/
– Follow the instructions on our Facebook post.

Entry Method #3 On Instagram:
https://www.instagram.com/carfinancedeals/
– Follow the Instructions on our Instagram post.

Entry Method #4 On Twitter:
https://twitter.com/carfinance_uk/
– Follow the Instructions on the Tweet.

Competition closes Monday 18th March. The winner will be contacted via E-Mail or the relevant social media channel.

Good Luck Everyone and be sure to tell your friends!

Team Car Finance Deals
www.carfinancedeals.com

Buying a Car through Personal Contract Purchase: PCP Explained

PCP is a common method of finance for consumers wishing to change their vehicle between 2 and 4 years. PCP offers flexibility and low monthly instalments; although these don’t cover the full cost of the car.

What is Personal Contract Purchase?
PCP is in its rawest terms; is a loan to help you get your new vehicle. But unlike a personal loan, you won’t pay off the full value of the car and you will not own it at the end of the deal – unless you decide to.

PCP is one of the more complex financial products available to help you buy a vehicle, but it can be broken down into three parts:

The deposit.
Typically around 10% of the cars value. The larger the deposit, the less you’ll have to borrow and lead to lower monthly payments.

Monthly payments.
The amount you will have to borrow is based on how much the finance company predicts the car will lose in value over the term of the deal minus the deposit you have put down. You’ll pay this amount off during the deal, plus interest. So you are not paying off the full value of the car.

Final payment.
At the end you can return the car, or make the final balloon payment and own the car outright. 

How does Personal Contract Purchase work?
Here is an example of how your deal could look. Let’s imagine you sign up for a PCP over three years to buy a car with a ticket price of £18,000. You put down a deposit of £2,000 and the finance company calculates that the car will be worth at least £8,000 after three years:

To ‘borrow’ the car you pay:
Deposit: £2,000
Loan: £8,000 (£10,000-£2,000) plus interest

Total: £10,000 plus interest

To buy the car you pay:
Deposit: £2,000
Loan: £8,000 (£10,000-£2,000) plus interest
Balloon payment: £8,000
Total: £18,000 plus interest

When you are ready to buy a vehicle; apply online with us here at Car Finance Deals. We will then pass your application over to the lenders and choose the best deal we can tailored for you. Once approved; you can decide over how many years you want to repay the loan and whether you want (or need) to pay a deposit. Then the fun part; selecting your vehicle. You can choose from thousands of vehicles in the UK or we can help select a vehicle for you.

Click on the following link to apply: https://www.carfinancedeals.com/apply

What happens when you get to view the vehicle?
This is the best part. Travel to the dealership and if you like what you see; drive it away! Because the paperwork has been done; all you need to do is decide if you want the vehicle or not! No hassle.

What is the difference between Personal Contract Purchase and a loan?
When taking out a loan; the car is yours as soon as you buy it. You obviously still need to pay the loan off, plus any interest. With PCP the car is not yours and will not be unless you decide to make a final lump sum payment at the end of the financial agreement.

What happens at the end of the PCP finance deal?
There is three options on how you can proceed at the end of the agreement:

Own the car outright by paying the balloon payment
End the agreement by handing the car back to the finance company
Part Exchange the vehicle for another car

Could i face any other charges at the end of the PCP finance deal?
You could face charges if you hand the car back through excess mileage charges or damage charges. Both are of course avoidable. At the start of the agreement you will advise how many miles you will do each year and if you go over the agreed limit the finance company will charge for this at the end.

Personal Contract Purchase Pros and Cons
Work out whether PCP is right for you

Pros
If you want to hand the car back or trade in for an all new model, as most PCP customers do, it’s a good option.
You get to drive a new car for lower monthly repayments than a personal loan or hire purchase.
A PCP agreement may let you buy a more expensive car than you might otherwise be able to afford with monthly payments to suit your budget
PCP is flexible. You have several options at the end of it; including the possibility to purchase the car if you like.

Cons
If you want to take ownership of the car at the end of the term, PCP will often prove more expensive than hire purchase finance deals.
You won’t own the car during the contract period and will only own it at the end if you pay the balloon payment.
Extra charges will be added at the end of the agreement if you go over the agreed set mileage or via damages that’s not down to normal wear and tear.

Buying a Car through Hire Purchase: HP Explained

Hire purchase is an easy finance option to understand. It is the most common method to finance a vehicle here at Car Finance Deals.

What is Hire Purchase?
Hire purchase (HP) is an arrangement where you hire the car or vehicle from a finance lender until you have paid for it in full. You would repay the lender a set amount each month and when the final payment is made; it’s yours to keep. No deposit is necessary however obviously;  any deposit will lower the monthly payments.

How does Hire Purchase work?
When you are ready to buy a vehicle; apply online with us here at Car Finance Deals. We will then pass your application over to the lenders and choose the best deal we can tailored for you. Once approved; you can decide over how many years you want to repay the loan and whether you want (or need) to pay a deposit. Then the fun part; selecting your vehicle. You can choose from thousands of vehicles in the UK or we can help select a vehicle for you.

Click on the following link to apply: https://www.carfinancedeals.com/apply

What happens when you get to view the vehicle?
This is the best part. Travel to the dealership and if you like what you see; drive it away! Because the paperwork has been done; all you need to do is decide if you want the vehicle or not! No hassle.

What is the difference between Hire Purchase and a loan?
When taking out a loan; the car is yours as soon as you buy it. You obviously still need to pay the loan off, plus any interest. With Hire Purchase the car is not yours until you have made the final payment, as the loan is secured against the value of the car.

What happens at the end of the HP finance deal?
You will become the owner of the vehicle and it will be yours to do what you like with.

What happens if i miss a payment?
If you miss a payment your car or vehicle could be repossessed. It would be worth checking how missed payments are dealt with before you sign up to your finance agreement. Also; missing any credit payment may affect your credit score.

Can my car really be repossessed if i miss a payment?
You are effectively breaking an agreement so you are at risk yes. How easily this could happen can depend on how much of the outstanding balance is left to pay on the finance agreement. For more information please check the Competition and Consumer Protection Commission website.

How do i get the best HP deal?
This is not straight forward as every agreement will suit different people depending on there financial circumstances. A deal taken out over a shorter time will more likely require higher monthly payments than a deal taken out over a longer period. There is of course the option to pay a deposit (of how much is usually decided by you) that would lower the monthly repayments also. Ultimately it will depend on what you feel comfortable in repaying each month.

Do remember you are applying for finance and presuming you are approved; you will be given the best rate that the finance lender will offer you. This is not a negotiation process. The offer is the set offer and the only way to improve the interest rates being given would be by improving your own credit score. For more information on improving your credit score, please check the Car Finance Deals guide by clicking here.

Hire Purchase Pros and Cons
Work out whether HP is right for you

Benefits
The car or vehicle is yours once you make the final payment.
In most cases, no deposit is necessary.
Convenient straightforward application process.
Fixed repayments and interest rates.
Payment and terms to meet your budget.
There is no financial lump sum to pay at the end of the agreement.

Risks
The loan is secured on the vehicle; so if you miss any payments the vehicle may be repossessed.

GiveAway Bonanza – Lot of Toys Games – Free Stuff Competition Prizes!

This month we have a bunch of Toys and Games to giveaway – all for one lucky winner!
So How do you enter?
All you need to do is leave a comment below telling us why you should win!

Entry Method #1 The Giveaway Landing Page: (On this page)
– Your entry will be confirmed by simply commenting in the comments box below.

For a Greater chance of winning; there are 3 ways you can enter this competition! So get 3 extra chances of winning for doing all of the below:

Entry Method #2 On Facebook:

https://www.facebook.com/carfinancedealscom/
– Follow the instructions on our Facebook post.

Entry Method #3 On Instagram:

https://www.instagram.com/carfinancedeals/– Follow the Instructions on our Instagram post.

Entry Method #4 On Twitter:

https://twitter.com/carfinance_uk/
– Follow the Instructions on the Tweet.

Competition closes Friday 15th February. The winner will be contacted via E-Mail or the relevant social media channel.

Good Luck Everyone and be sure to tell your friends!
oh – and for those of you that would like a new car 🙂 click here: https://www.carfinancedeals.com/apply

Car Finance Deals announces collaboration with Anytime Fitness

Manchester, 4th February, 2019 – CarFinanceDeals.com – the UK’s Most Loved Car Finance Broker has announced an agreement with Anytime Fitness. The rapidly expanding Car Finance brokerage is providing a member exclusive offer for all of its gym customers.  If any purchase a new vehicle via Car Finance Deals; they will receive £200 when the vehicle loan is paid out. There is also an offer for customer referrals also where this £200 can be split between gym member and the new customer. So; If you are looking to obtain finance to buy a used vehicle and are a member of Anytime Fitness be sure to take advantage of this market leading deal.

Stephen Staley, Director of Car Finance Deals, commented: “We are pleased to be associated with such a fast growing excelling brand. We too; are positioning ourselves for rapid growth and want to offer the best value to our customers in order to achieve this.  As soon as the customer has decided they want a new vehicle they can contact us and we will for no charge; locate the ideal car for them via our personal shopper service.  We work with hundreds of trusted dealerships across the UK so ultimately we make the whole car buying process as easy and as enjoyable as possible.”

For full details and T&C’s; please contact Car Finance Deals direct on 01618503729 or check your local Anytime Fitness members board.

About Car Finance Deals
Founded in 2018, based in Manchester, UK; Car Finance Deals was born with two immediate objectives; to make the vehicle buying process as easy as possible and to take the greatest of care in making its clients its number one priority.  Albeit a new business; the team has years of experience dealing in the motor sector; bringing together vital knowledge that will make Car Finance Deals unique in its operation. Car Finance Deals is setting new standards when it comes to accessing finance to buy a used car and prides itself on taking a modern approach to a motor industry that is desperate need for an upgrade.

About Anytime Fitness
Ranked #1 on Entrepreneur’s prestigious Top Global Franchise list, Anytime Fitness is the fastest growing gym franchise in the world, with over 3,000 gyms serving more than 2,600,000 members on five continents.  Open 24 hours a day, 365 days a year, Anytime Fitness prides itself on providing its members with convenient fitness options and friendly, personal service in well maintained facilities which feature top-quality exercise equipment.  With gyms in 24 countries and over 90 trading in the UK. All franchised gyms are individually owned and operated. Join one gym and use them all.

A New Vehicle and £100 Cash – Refer a friend from Car Finance Deals

Refer a friend and get £100 Cashback in the process; whats not to like!!

Introduce a friend or family member who would like to get a vehicle on finance; and the vehicle loan is paid out, we will pay £100 for your referral.

How it Works:
Call us on 0161 850 3729
The customer you introduce would need to speak to us advising whom the introducer is. Alternatively you could call with the customer you are introducing present.
At this point we would run through the application.
Once approved for finance; the Customer choses a vehicle from any reputable dealer in the UK or alternatively we can help find a suitable vehicle from our trusted dealerships.
We will then handle the paperwork & transfer the funds to the dealer.
When the loan is paid out we will pay you £100 direct into your account.

Hurray!

Best Regards
Team Car Finance Deals
Apply today >> https://www.carfinancedeals.com/apply

Mystery Gift GiveAway! Competition. Free to Enter!

It’s a New Year (Happy New Year!) and we are desperate to celebrate so we’ve chosen to do it in a way only we know; We are giving away a Mystery Gift!How do you enter you ask? All you need to do is leave a comment below telling us why you should win!

For a Greater chance of winning; there are 4 ways you can enter this competition! So get 4 chances of winning for doing all of the below:

Entry Method #1 The Giveaway Landing Page: (On this page)
– Your entry will be confirmed by simply commenting in the comments box below.

Entry Method #2 On Facebook:
https://www.facebook.com/carfinancedealscom/
– Follow the instructions on our Facebook post.

Entry Method #3 On Instagram:
https://www.instagram.com/carfinancedeals/
– Follow the Instructions on our Instagram post.

Entry Method #4 On Twitter:
https://twitter.com/carfinance_uk/
– Follow the Instructions on the Tweet.

Competition closes Monday 28th January. The winner will be contacted via E-Mail or the relevant social media channel.

Good Luck Everyone and be sure to tell your friends!
– oh and Happy New Year from all at www.carfinancedeals.com !!