Should I Improve credit score before applying for finance?
Bad Credit Finance: Should I improve My credit score first
If you have been following our website for a while, then you know that getting a car on finance with bad credit is certainly possible. One question that comes up a lot however is “Should I try to improve my score before applying for finance?” As many of you know improving your credit score can be a difficult and time-consuming task. It requires a lot of effort on your part, as well as a change of spending habits. Many people choose to take this route before committing to car finance, but as you are well aware it can take months for your credit to recover, depending on how bad it is at the start.
Since it’s possible to purchase a car with bad credit car finance, many people don’t find it necessary to improve their score before applying for finance. The thing is however that you will be limited and restricted to how much you can borrow.
The worse your credit score the less money you will be able to borrow. This means that you might not be able to get the vehicle of your choosing. Since most lender will not be willing to take a risk on you, there’s a high chance that you will only be able to purchase a car on Hire Purchase. Options such as PCP are very often reserved for those with excellent credit scores.
Determining what it is that you are looking for can help make you the decision. If you are looking for a cheaper car and don’t mind the restrictions, then not improving your credit score could be the option for you. If on the other hand you don’t mind waiting a little while in order to get more freedom, then you should definitely try to improve your score before applying anywhere.
Buying a car doesn’t have to be a struggle and virtually anyone can apply for finance. It all depends on what you are after however, as your personal circumstances will decide how much you can borrow and which options are available for you.
For more informative guides to car finance be sure to check out the rest of our blog.