Getting Van Finance With Poor Credit: A Complete Guide
Getting Van Finance With Poor Credit: A Complete Guide
It’s Finance Friday and we want to dispel a few myths around attaining van finance despite having a poor credit history. The world of finance is sometimes difficult to navigate, especially when all sorts of sources tell you different information, so we want to share what we know.
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Can I get a van on finance if I have poor credit?
If you have a good credit rating, it should be simple to secure finance, however, it can be a daunting task if you know your credit history isn’t as good as it could be. We want to assure you it’s possible to obtain a vehicle on finance if you have a poor credit history or if you’ve been refused loans in the past. When this is the case, you’ll be generally offered less competitive deals than someone with good credit. The best thing to remember with financing is it’s all on a case-by-case basis. There’s no one-size-fits-all when it comes to who gets finance and who doesn’t.
Electoral Register
A very easy thing to do is ensure you’re on the electoral register. This is one of the first things a finance company will check for. Being enrolled on the electoral register helps to prove you are who you say who you are and that the details you provided are accurate.
Confirming your identity with the electoral register helps avoid problems with fraud and identity theft; the more confident a finance company is that you are who you say you are, the more likely you’ll be accepted for finance.
Will applying for finance affect my credit score?
There’s a lot of different information on the internet about how much a check will affect your credit score, but it’s generally accepted that it has no effect or very little. For this reason, it’s always worth applying anyway. Each search leaves a mark that can be seen by other lenders, and applying for several lines of credit within a short period of time creates the impression that you are in desperate need of funds. This does mean finance companies may see you as a risk and may decide not to lend to you on that basis. Therefore, as a company, we will not perform more than three searches on each customer.
If you’re in doubt about your credit history or want to find out how to improve it, you can get a check from reference agencies such as Experian. You can also talk to our finance department if you want to go through anything on your account before applying.
Can I Get A Finance Agreement If I’ve Been Declared Bankrupt In The Past?
If you’ve been in the unfortunate position to have been declared bankrupt in the past, you will need to have been discharged for at least 12 months before it’s possible. Typically, you’ll be asked to declare the facts behind your case and may be charged a higher rate of interest because the lender may evaluate you as being at a greater risk of not keeping up with repayments.
What About New Businesses?
It is possible to attain van finance, even if you are a newly-incorporated business. Finance companies would like to know you can make payments regularly and on time. But since new businesses are, well, new, there’s no proof they can.
However, other factors can make applications for finance successful – even if the business is new. Such factors include if the applicant is on the electoral register or if the owner signs a director’s guarantee.
Click here to read our full guide on getting van finance for new business startups.
Conclusion
Hopefully, this guide has answered some burning questions you may have on applying for van finance with a poor credit score.
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Feel free to ask any further questions!