How to get a Bad Credit Car Loan in London [2022]

How to get a Bad Credit Car Loan in London [2022]

Posted on February 14, 2022

Our London auto loans team have put together some tips that will help you get a car loan, even with terrible credit.

You will need to follow these suggestions closely if you want to realize your goal of owning a car.

Reviewing your credit score and report

If you have terrible credit now, it does not mean you will have credit issues forever. The first step in dealing with your credit challenges is understanding the cause of them.

You can download your free credit report from TransUnion and Equifax, so start by doing that.

These apps will give you insight into why your credit score is low. While we cannot review your profile, the most common reason you have terrible credit is not making your payments on time.

While having too much debt will bring down your credit score, your payment history or lack thereof is the main culprit.

Since you are looking at your credit report, make a list of all the accounts that are overdue and come up with a repayment plan.

Your credit score will not improve until all of these debts are repaid, so this should be on the top of your priorities.

Do you have a good income?

Your credit score impacts whether you qualify for prime or subprime interest rates. But your income dictates whether you can get a loan.

Your debt-to-income (DTI) ratio is something that all lenders use when trying to make a decision on whether to offer you credit.

While the ratio varies, most lenders will not approve a loan if your DTI is over forty percent (40%). Prospective lenders will need to review your income documents.

If you are self-employed, you will need to provide your income tax assessments and bank account statements for verification.

Picking the right car for your budget

Car prices are quite high, and with terrible credit, you will not qualify for a new car loan in London.

We want you to have the right expectation, so while you may not qualify for a new car, you can still get a good quality used one. There are many brands of cars to choose from, but you should consider buying a brand that holds its value, like a Jeep.

How to get approved for a car loan with terrible credit

You will not be able to find a lender online who will give you a terrible credit car loan. These lenders do not advertise their loans online because these loans are risky.

The only way you can get a car loan approved is with the help of a car dealership in your community that specializes in these loans. They advertise by using terms like “second chance credit, no application refused” or something along those lines.

The dealership is able to help you get approved for a car loan and can show you how to fix your credit, so you never have to deal with the challenges of having terrible credit.

You need to make the first move, contact the dealership today and start taking steps towards your goal of owning a car.

When you’re ready for a car lease or loan, get in touch with the London auto loan experts at Northway Ford for great deals on auto finance.

We’d love to help you find the perfect car loan. Simply fill in the form below and we’ll get back to you ASAP! 

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