These days, more and more people are finding themselves in a situation where their credit score is holding them back from being able to get the things they want in life. Your credit rating can have a profound impact on your ability to get finance for the purchases you want to make, and those with damaged credit can experience problems with everything from getting a credit card through to getting car finance.
The difficulties that people can experience when it comes to buying a car with bad credit means that they could find themselves lumbered with an unreliable or even unsafe vehicle because they cannot afford a better one. Alternatively, they could find themselves stuck without a vehicle at all, which could affect everything from their personal lives to their ability to get work.
4 possible solutions for those with bad credit
For those who have damaged credit but who need to get a vehicle, there are a number of possible solutions available. Some of the options you can look at if your credit is holding you back from getting a new car via traditional means include:
Use savings: If you have money in savings, you may want to use this to purchase your car. However, you will need to have a fairly sizeable amount if you want to pay for a decent, relatively new or brand new vehicle. Also, the chances are that if you have damaged credit you are probably experiencing financial difficulties and may therefore not have a lot of money put aside in savings.
Buy a cheap second-hand vehicle: You may want to scour the internet, papers and specialist trade magazines with a view to buying a cheap second-hand vehicle, which you may be able to afford to purchase outright. However, the main downside to this is that you do not know what you are getting for your money unless you are an expert in this field. This means that you could end up buying a car that costs you a fortune in repairs or could even end up being unsafe.
Borrow money from family: If you cannot get a loan or finance from dealerships or lenders, you may be able to discuss borrowing money from close family. Some people, however, do not like being indebted to family and some may find that family members cannot afford to lend them this sort of money. This is therefore not a solution that will suit everyone but could be an option for some.
Find a specialist car finance company: These days, there are specialist companies that can provide a bad credit car loan for those who do not have the best credit rating. This could be an effective solution if you cannot get traditional finance, as it does mean that you can invest in a reliable, safe car that is in good condition rather than having to buy at rock-bottom prices from private sellers and risk buying an unreliable or dangerous vehicle.
One thing you should bear in mind when buying a car is the importance of buying one that is not going to cost you money hand over fist once you have made your purchase.
