I want a new car but my credit history isnt very good - we have answers here
- google images
I want a new car but my credit history isn't very good! A new car is a big expense and many people struggle to pay for one out of their savings. It's very common for people to seek loans from financial institutions when they want a new car, but if you've experienced difficulties with loans, debts and arrears in the past, many places will refuse to provide you with a car loan.
Fortunately, there are lenders willing to provide credit to people with a bad credit history. Provident loans is one of the options. They offer unsecured loans to everybody. Because the loans are unsecured, your assets aren't at risk if you fail to repay the loan. However, you will be charged at much higher rate of interest for unsecured loans.
A significant disadvantage to Provident loans is the maximum amount you can borrow is £500. This could pose a problem if you intend buying a new car with the loan, as there are not many cars on the market for less than £500.
A much better option for a car loan when you have a poor credit history is your local Credit Union. They provide loans at extremely favourable rates and the amount you can borrow depends on how much you have saved in your Credit Union account.
To apply for a loan from the Credit Union, you will need to drop in and speak to loans officer. They will explain to you how much you can borrow and what the repayment plan will look like.