Buying a car on finance is a dangerous topic – everyone has their own opinion and tend to be quite settled in it. Car finance isn’t for everyone and personally it’s not something I’ve had to use, yet. If I found myself in a sticky situation where I needed a car to move forward with my life – for transport to work, for my family, or something with similar weight, but without the means to afford it, I might consider car finance. Refused Car Finance is car finance for someone who’s already been refused car finance in the past, due to poor credit history or perhaps because they didn’t meet the income requirements.
Why Would You Want to Use Refused Car Finance?
If you’ve got a bad credit rating and finding it impossible to get a loan anywhere for your car loan, then refused car finance can be a good option for you. You need to be aware that this is also an opportunity for you to rebuild your credit rating. Make payments on time, pay your loan off faster if you can and ensure that you use this as a way to regain financial institution’s faith in you. If you have poor credit ratings, you’re going to find it extremely challenging to get loans in future, especially for things like mortgages etc. Think of a refused car loan as a second chance, and an opportunity to get that car you’ve been dreaming of.
Tips for Refused Car Finance
Make sure you read the fine print, check how much the interest rate is and calculate what the total loan is really going to cost you. It’s important to be aware of what you’re signing yourself up for before you get in too deep.
Have a Fake Loan
Why not consider saving the amount you plan to make on repayments in advance for a few weeks to see how your budget is without this amount of money. You might think it will be easy to put $20, $30, or $50 aside, but the reality might be a lot different. Do a trial for a month and see how it affects your finances and whether you find yourself stressed at all.
Set Reminders
It can be hard to remember when payments are due, so use your smartphone or email account to set up regular reminders to remind yourself to make payments. Forgetting or missing payments, or even being consistently late with payments, is going to further damage your credit rating. If a refused car loan is your only option, you’re already on thin ice so be smart and ensure you don’t get further into that hole.
Have you ever used a refused car finance loan before? If so, how was your experience?